Dollarization, private banking and financial profitability in Ecuador

Monika Meireles and Gabriela Rivera

Chapter 5 in Central Banking, Monetary Policy and the Political Economy of Dollarization, 2025, pp 144-164 from Edward Elgar Publishing

Abstract: In 2000, after a deep private banking crisis with significant repercussions on public finances and the national economy, Ecuador abandoned the sucre as legal tender currency and formally dollarized. Under the new ultra-rigid exchange rate monetary system of formal dollarization, the country has immersed itself in a limited economic policy space. Although the new and tight constraints on Ecuadorian macroeconomic management issues have been the subject of various studies, we cannot say the same of the effects of dollarization on financial profitability, especially on the profit obtained by the private banks operating in the country. The main objective of this chapter is to analyze the behavior of private banking in the years of dollarization, from 2000 to 2020, using both aggregate information on trends in the sector and accounting data and profitability indicators of the most important banks.

Keywords: Dollarization; Central banking; Monetary policy; Private banking; Financial profitability; Ecuador (search for similar items in EconPapers)
Date: 2025
ISBN: 9781803925325
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781803925332.00013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:21668_6

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().