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Financial swot of Ecuadorian private banks after fall in petroleum prices, 2015-2016

Abstract:

The present research analyzes the financial situation of the private banks of Ecuador, following the fall of the oil price in 2015 and the first half of 2016, through a structured financial SWOT thanks to the application of the CAMEL methodology. The financial information of the 21 private banks of Ecuador presented by the Superintendency of Banks and Insurance in its web portal is analyzed. The periods studied evidenced as strengths the constant access to cbkp_redits and the continuous obtaining of financial incomes; such as financial leverage opportunities and a banking segmentation; such as the strong concentration of banks, the periodic increase in delinquency rates in the consumer and housing cbkp_redit portfolios at a rate of 148.10% and 283.45%, respectively, and as threats to a declining economy that leads to the loss of incomes reflected in profits and a sharp increase in banking regulations; so it is vitally important that banks in general have an adequate structure of assets, liabilities and equity in order to provide liquidity. The research shows the level of dependence of the Ecuadorian economy on oil exports and the areas need to be strengthened and improved in the banking sector.