The Association of Banks of Ecuador (Assobanca) states that from May 2023 seven out of every $10 of private bank deposits were savings and time deposits.
During the past month, the bank was registered 43.823 million dollars in depositswhich means that 2,775 million dollars more deposits were recorded than in May 2022. growth of 6.8 percent per yeardata from the Head Office of banks show.
It is detailed that of the total bank deposits, 18.285 million dollars corresponds to term depositswhich represents a growth of 18.1% compared to May 2022. While savings deposits reached 11,426 million dollars, and cash deposits reached 11,928 million dollars.
In other words, 68% of bank deposits, or the equivalent of 7 out of every 10 dollars, corresponded to savings and time deposits. Meanwhile, 27% correspond to cash deposits on current accounts.
Except, the flow of credit delivery slows downdue to _as explained by Asobanca_ the higher costs of international financing, which is exacerbated by the existence of interest rate ceilings in Ecuador.
Thus, the loan portfolio reached USD 39,972 million in May 2023, growth of 11.5 percent ($4,114 million additional) compared to May 2022, when an annual growth of 16.7% was recorded.
Of the total loan portfolio as of May 2023, 59% ($23,767 million) is intended for production loans (productive, housing and microcredits) and 41% on consumer loans ($16,205 million).
The association points to the continued strengthening of the solvency of the banking sector, with 3.8 percentage points above the legal obligation. “Ecuadorian banks remain solid, liquid and stable, with technical, prudent and professional management“, they pointed out from the entity.
Source: Eluniverso
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