The Central Bank of Ecuador reported that the Financial and Monetary Policy and Regulation Board approved its first Financial Stability Report since its formation, covering 2021-2025. The report finds that the national financial system remained sound and expanded through December 2025, with assets rising 11.5% annually to USD 117.334 billion, equivalent to 90% of gross domestic product. It also reviews regulatory measures adopted in 2025 to advance convergence toward Basel III, provide financial relief and establish rules for financial technology firms. Private financial institutions recorded deposit growth of 14.2% and gross lending growth of 12.2%. Their capital adequacy ratio stood at 14.3%, above the 9% legal minimum, while the delinquency ratio fell to 3%. Public financial institutions had a capital adequacy ratio of 38.1%, but delinquency remained higher at 13.9%, despite declining 2.8 percentage points. In the popular and solidarity financial sector, deposits increased 14.5%, capital adequacy reached 16.9% and delinquency stood at 8%. The two deposit insurance trusts held combined assets of USD 4.317 billion, providing coverage for more than 18 million private sector depositors and more than 12 million customers in the popular and solidarity sector. The regulatory review records 21 resolutions issued during 2025 to advance convergence toward Basel III. Other measures included financial relief following the 2024 energy crisis to preserve credit portfolio quality, rules for financial technology firms and a regulatory sandbox, and reforms to the National Financial Inclusion Policy. The report also records the creation of a unified system for credit rating agencies and harmonization of rules across the financial, securities and insurance sectors.

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