The Financial Crisis in Ecuador, 1998-2000

This study is an analysis of the problems of the financial system that led Ecuador to face a socioeconomic crisis, the fragility of the Ecuadorian financial system was evident in the salvage of Filanbanco in November 1998, which had repercussions on the exchange rate, deprecation of the sucre and ca...

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Detalles Bibliográficos
Autor: García Osorio, Nelson
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:Ecuador
Institución:Universidad Tecnológica Equinoccial
Repositorio:Revistas Universidad Tecnológica Equinoccial
Idioma:español
OAI Identifier:oai:ojs.ute.edu.ec:article/160
Acceso en línea:https://revistas.ute.edu.ec/index.php/economia-y-negocios/article/view/160
Access Level:acceso abierto
Palabra clave:financial system
economic crisis
dollarization
sistema financiero
crisis económica
dolarización
Descripción
Sumario:This study is an analysis of the problems of the financial system that led Ecuador to face a socioeconomic crisis, the fragility of the Ecuadorian financial system was evident in the salvage of Filanbanco in November 1998, which had repercussions on the exchange rate, deprecation of the sucre and capital flight, aggravating the liquidity of the financial system, which resulted in the closure of some banks, incling Progreso Bank, considered the second Bank in the country by size of assets and one of the most profitable institutions. Subsequently, in March 1999, a "banking holiday" happened, that froze bank deposits, affecting the financial and economic activity of the country and deepened the problem of insolvency in the financial system, resulting in dollarization of the country in January 2000, as a means of departure for monetary stabilization.