## Ecuador: Financial System Stability Assessment

_IMF Staff Country Reports, September 21, 2023_

## Source details

**Canonical URL:** [Ecuador: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2023/09/21/ecuador-financial-system-stability-assessment-539348)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/09/21/ecuador-financial-system-stability-assessment-539348/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/09/21/ecuador-financial-system-stability-assessment-539348/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/09/21/ecuador-financial-system-stability-assessment-539348/bundle-manifest.json)

## Bibliographic details
- Published: September 21, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400254208.002

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### Overview and context
- Publication date: September 21, 2023
- Publication type: IMF Staff Country Reports; Country Report No. 2023/335; Issue: 335; Volume: 2023; Pages: 50
- DOI: https://doi.org/10.5089/9798400254208.002
- Stock No: 1ECUEA2023001
- ISBN: 9798400254208
- ISSN: 1934-7685
- Subject tags as provided: Credit, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, International organization, Loans, Monetary policy, Money, State-owned banks
- Keywords as provided: B. bank solvency stress tests, Caribbean, Credit, emergency liquidity assistance facility, Financial Sector Assessment Program, Global, lender-of-last resort function, liquidity analysis, liquidity condition, liquidity fund, liquidity vulnerability, Loans, State-owned banks, World Bank FSAP mission
- Note on eLibrary: "Our eLibrary offers over 25,000 IMF publications in multiple formats."

### Key findings: financial system structure and risks
- Banks and credit cooperatives dominate Ecuador’s financial system.
- Dollarization provides an important anchor for the Ecuadorean economy.
- Systemic liquidity risks are high due to the limited capacity of the central bank to provide liquidity.
- The financial sector is overall resilient to adverse macrofinancial shocks, but some institutions have meaningful solvency and liquidity vulnerabilities.
- To preserve confidence it is key to:
  - enhance capitalization,
  - promptly recognize loan losses,
  - address unviable institutions.

### Institutional assessment and supervisory framework
- The FSSA concluded that the institutional framework for financial sector oversight is:
  - complex,
  - uncoordinated,
  - prone to political intervention.
- Identified reform priorities:
  - enhance supervisory independence,
  - prioritize safety and soundness,
  - separate prudential supervision from other functions,
  - substantially strengthen the supervisory approach.
- Macroprudential framework needs further progress by:
  - developing stronger financial sector-wide analytical capacity,
  - improving information sharing and coordination,
  - clarifying the roles between multiple agencies.

### Policy recommendations and near-term actions
- Strengthen capitalization across vulnerable institutions.
- Ensure prompt recognition and provisioning for loan losses.
- Resolve or restructure unviable institutions to preserve confidence.
- Reform institutional oversight to reduce political intervention and improve coordination.
- Build macroprudential analytical capacity and mechanisms for information sharing and role clarity among agencies.

### Publication and access notes
- Format options noted on the landing page: "Download PDF" and "More Formats on IMF eLibrary".
- Citation example provided on page: International Monetary Fund. Monetary and Capital Markets Department "Ecuador: Financial System Stability Assessment", IMF Staff Country Reports 2023, 335 (2023), accessed 9/10/2026, https://doi.org/10.5089/9798400254208.002

*Source: IMF Staff Country Report "Ecuador: Financial System Stability Assessment", Country Report No. 2023/335 (September 21, 2023).*

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## Content in this bundle

- **Ecuador: Financial System Stability Assessment; IMF Country Report No. 23/335; August 4, 2023**
  - [Ecuador: Financial System Stability Assessment; IMF Country Report No. 23/335; August 4, 2023 (Markdown version)](/-/media/files/publications/cr/2023/english/1ecuea2023001.pdf.md){rel="alternate" type="text/markdown"}
  - [Ecuador: Financial System Stability Assessment; IMF Country Report No. 23/335; August 4, 2023 (PDF)](/-/media/files/publications/cr/2023/english/1ecuea2023001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/09/21/ecuador-financial-system-stability-assessment-539348_