Ecuador: stricter regulations to be instituted for banking sector

online.wsj.com reported… Growth in Ecuador’s banking sector will likely continue to be affected this year, as President Rafael Correa’s administration looks to pass stricter regulations following a series of other rule changes that have been implemented since he took office.

According to data from Private Banking Association of Ecuador, or ABPE, the nation’s banks had return on equity of 10.15% in 2013, compared with 12.79% in 2012, 18.91% in 2011 and 14.32% in 2010. In 2006, when President Correa was elected to office, banks had return on equity of 24.21%, according to ABPE.

Economists expect the trend of declining profitability to continue this year, pointing to new monetary and finance legislation the government is planning to send to the National Assembly, which is controlled by President Correa’s ruling party. Read Article

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