Comparative analysis between credit union and banks in Ecuador

Abstract

The financial system constitutes a fundamental pillar in the economy of a country, where cooperatives and banks are the actors that stand out in terms of coverage and services. The objective is to establish the particularities in the operation of the cooperative and banking sectors in Ecuador. The methodology used in the development of this work is qualitative, its scope is descriptive-transversal and of a documentary nature, for which, secondary sources were used, through an in-depth bibliographic review of a series of statistics with a cross-section to 2020, issued by the Association of Private Banks of Ecuador and the Superintendency of Popular and Solidarity Economy and Superintendency of Banks. The results present the particularities in the operation of the cooperative and banking sectors in Ecuador, analyzing their regulatory framework, constitution, founding principles, philosophy, business model, governance, financial intermediation process, evolution and participation in the market, main indicators financial and contribution to the real economy. It can be concluded that there are profound differentiating characteristics from the philosophical and social aspects between these two representatives of the national financial system, highlighting that the Savings and Credit Cooperatives have a strong presence in the social sphere governed by principles and values; while the banking sector prevails as number one in terms of coverage and capital mobilization.