SPECIAL REPORT – Is Ecuador on the Right Track? – BNAmericas
Ecuador’s private sector banks are bracing for what could become a prolonged period of slow loan growth due to the country’s severe economic and fiscal problems. As a result, its economy is set to be among the worst performers in Latin America and the Caribbean during 2019-20, as President Lenín Moreno struggles to change the nation’s state-led economic model to one driven by the private sector.
The troubled economy is set to have a negative impact on banks’ asset quality and profitability, though the strong financial health of the private banking sector should prevent any risk of a major spike in bad loans.