The Ecuadorian government recently announced that, in light of the ongoing global financial crisis, it will step up its supervision of financial institutions in the country. Ecuador’s Superintendent of Banks and Insurance, Gloria Sabando commented that, although the crisis is not expected to have an immediate impact upon Ecuador, it signals the need to take measures to avoid a future crisis in the country.

As part of these stepped-up efforts, Sabando stated that the Superintendency has reviewed the risk activities of 90% of the credit institutions in Ecuador, finding that the financial system falls within the “limits established by law.” In this regard, Sabando noted that the review led to the closing and redistribution of accounts earlier this year of Mutualista Benalcazar for “administrative failures.”

Sabando further commented that the Superintendency is engaged in “constant supervision of banks’ liquidity management” and has found “excessive depositing of funds in foreign accounts by [Ecuadorian] financial institutions,” but that “sufficient funds exist for local institutions to operate without problems.”