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Population (millions) |
13.1 |
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Gross domestic savings (% of GDP) |
20.9% [2001] |
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% Population under $2/day (PPP) |
52% |
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Regulated microfinance institutions |
Commercial banks and NBFIs such as: banks, financial associations, savings and credit mutuals for housing, savings and credit cooperatives, and investment and development corporations. |
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Non-regulated sources of microfinance |
Savings and credit coops under the control of the Ministry for Social Well-being, NGOs, private lenders, and popular organizations that provide savings and credit services for its members. |
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland
| Banks | Financial Associations/Investment and Development Corporations | Savings and Credit Mutuals for Housing | Savings and Credit Cooperatives | |
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Definition or description of institution |
Credit and investment operations. |
Financial intermediaries that take deposits to offer credit and investment operations. |
Financial intermediaries that take deposits to on-lend in the housing finance system and elsewhere. |
Cooperatives provide financial intermediation services either with their members or with the public, in which case they are subject to regulation. |
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Guidelines & restrictions on financial services |
Permitted: deposits (short-term, term and on-site), guarantees, issue debt, receive loans and accept credit from domestic and foreign financial institutions, provide real estate and chattel loans, leasing, checking accounts, negotiable instruments, etc. Prohibited: May not freeze deposits. |
Permitted: Receive term deposits for more than thirty days, provide guarantees, issue debt, receive loans and accept credit from domestic and foreign financial institutions, provide real estate and chattel loans, provide negotiable instruments, etc. Prohibited: Deposits for less than thirty days, on-site deposits presented by check or other payment mechanism, issuing credits on checking accounts; freezing deposits. |
Permitted: acquire resources from the public to finance housing, construction and the wellbeing of its members. These investments cannot exceed 100% of its technical capital. In no case can an investment project hold 100% of the allotted quota. Prohibited: Art.2 & 51- cannot negotiate securities, cannot transact in foreign currency, buy or sell precious minerals, and guarantee the issuance of shares or obligations. |
Permitted: Receive any deposits, accept third party obligations, issue debt, receive loans and credits from domestic and foreign financial institutions, provide chattel and real estate loans, issue credits on checking account, negotiate letters of exchange, IOUs, promissory notes and other negotiable instruments that represent payment obligation. Prohibited: Art.2 & 51- cannot negotiate securities, cannot transact in foreign currency, buy or sell precious minerals, and guarantee the issuance of shares or obligations. Also, cannot negotiate documents related to international business transactions or engage in commercial lease operations. |
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WOCCU's Savings Mobilization Programs in Latin America(88 KB, DOC)
"Adapting to the Challenges of Changing Financial Paradigms WOCCU's Savings Mobilization Programs in Latin America", 2003
By Janette Klaehn
This paper presents the case study of the savings methodology employed by the World Council of Credit Unions, Inc. (WOCCU) in its Latin America programs in Bolivia, Ecuador, Guatemala, Mexico and Nicaragua.
In Latin America, WOCCU has implemented credit union strengthening programs in Bolivia, Ecuador, El Salvador, Guatemala, Honduras, Mexico and Nicaragua. WOCCU experience repeatedly demonstrates that credit unions which combine financial discipline with demand driven products and aggressive outreach can both satisfy local demand for savings services and generate stable, long-term financing to meet member demand for credit services.
Ecuador: Savings Mobilization in 14 Credit Unions
Summarized from: "Striking the Balance in Microfinance, A Practical Guide to Mobilizing Savings", 2002, pages 241-260
Edited by Brian Branch and Janette Klaehn
Case study written by Oswaldo Cabezas Paredes
This case study provides an overview of the savings strategies and practices implemented in 14 credit unions in Ecuador and presents data that demonstrate the success those institutions achieved in mobilizing savings. The study also establishes a savings profile of membership in the credit unions, based on individual surveys. This case study was the result of a formal investigation of savings mobilization implemented by the German Confederation of Credit Unions (DGRV) in November 2001, with the objective of contributing to the development of the credit unions of Ecuador.
Ecuador: Stability in a Time of Crises
San Francisco, Ltd. And 23 de Julio, Ltd.
Summarized from: "Striking the Balance in Microfinance, A Practical Guide to Mobilizing Savings", 2002, pages 213-240
Edited by Brian Branch and Janette Klaehn
Case study written by Cesar Izurieta Moreno
This case study examines two credit unions in Ecuador to evaluate the key elements of their success in mobilizing savings during economic and political crises. The two credit unions have several similar characteristics, while operating in different markets. Both credit unions took part in the WOCCU Credit Union Strengthening project in Ecuador, which began in 1995 and ended in 2001.
Extending credit union services to poor rural women
Freedom from Hunger (FFH) has worked with twenty-two credit unions or credit union (CU) federations in Ecuador, Africa, and the Philippines to extend their financial services - including savings services - beyond urban and peri-urban areas to serve self-managed groups of poor rural women. This one-page case describes the key changes and challenges that this has involved.
This case study can be found in Savings Operations for the Poor: An Operational Guide, edited by Madeline Hirschland, forthcoming from Kumarian Press (1294 Blue Hills Avenue, Bloomfield, CT 06002).