Analysis of the credit portfolio in Ecuador: perspective of the National Corporation of Popular and Solidarity Finance

Abstract

In Ecuador, deficiencies in collection procedures and the lack of instruments to guarantee credit recovery contribute to the increase in delinquencies in public banks, generating liquidity problems and affecting credit risk control. This study analyzes the trend of the credit portfolio of the National Corporation for Popular and Solidarity Finance between 2018 and 2022, evaluating its impact on the total debt. The descriptive statistics show a significant proportion of the portfolio to mature, evidencing effective management, although delinquency persists as a challenge. The need for policies to mitigate late payment and improve debt recovery is highlighted. These findings can serve as a basis for the design of public policies and institutional strategies aimed at strengthening the popular and solidarity sector in the Ecuadorian financial sphere.

Keywords:

Credit portfolio, Credit risk, Financial corporations, Overdue portfolio, Written-off portfolio.