Prepared by Mayra Zermeño
See IMF, Ecuador: Selected Issues and Statistical Annex, Report No. 00/125, October 2000, Chapters DT and IV.
The banks held about 8 percent of their assets in government bonds at end-2002.
See Ley para la Transformacion Economica del Ecuador, Law No. 4, RO/Supplement 34, March 13, 2000.
See Junta Bancaria Resolution No. JDFL-001-2001
Based on the estimate of per capita GDP for 2002, the revised ceiling would now be about US$7,800.
See Central Bank of Ecuador Resolution No. 073-2001, January 11, 2001.
Fondo de Liquidez Sistema Financiero Ecuatoriano: Un Nuevo Esquema, unpublished mimeo, January 2003.
The incorporation of the short-term foreign assets and legal reserve requirement in the new liquidity fund, may not constitute a change in the banks’ liquidity requirements established by the SBS. Rather, these resources will remain the property of each individual commercial bank, but administered by the independent liquidity fund manager. The advantage is that in so doing a larger amount will be “pooled.”
Andrew Powell, Ensuring a Sound and Efficient Financial System in a Dollarized Economy: Assessment and Prescriptions for Ecuador, mimeo, January 2003.