Banking regulatory framework in Ecuador and its impact on SME financing

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Published: Apr 18, 2024
Updated: 2024-04-18
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2024-04-18 (3)
DOI: https://doi.org/10.17163/ret.n27.2024.10
Keywords:
regulatory framework, financial system, financing for SMEs, financial consumer, latent variable

Main Article Content

Armando José Urdaneta-Montiel
https://orcid.org/0000-0002-9825-9453
Angel Alberto Zambrano-Morales
https://orcid.org/0000-0002-7897-7327

Abstract

The investigation, contextualized within the quantitative epistemological approach and the positivist paradigm, allowed determining the relationship between the regulatory framework of the financial sector in Ecuador and the financing conditions for SMEs. This was of a descriptive-correlational type, allowing a descriptive and factorial analysis of variables related to the knowledge and application of laws and regulatory codes by 54 credit officers in the banking sector of El Oro, Ecuador. Two dimensions were identified: one related to the monetary regulatory framework and another to organic codes. Surveys indicate that the most applied laws are the General Law of Institutions of the Financial Sector and the Company Law. The first regulates the creation, operation, and closure of private financial institutions in Ecuador to protect the population and ensure financial stability. The Banking Superintendence supervises and controls their regulatory and operational compliance. The second simplifies and expedites the process of establishing companies, allowing various types of companies and flexibility in their structure. The Ecuadorian banking regulatory framework has undergone reforms to strengthen the solidity and transparency of the system, such as the Securities Market Law and the Law of Institutions of the Private Insurance System, which have contributed to stability, regulation, consumer financial protection, and promotion of competition, generating more favorable financing conditions, including trust, competitive interest rates, and a wide range of financial options.Principio del formulario

Article Details

Issue
Vol. 14 No. 27 (2024): (April-September)
Section
Miscellaneous Section
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