The Superintendence of Banks of Ecuador published an update on Banco Amibank S.A.’s condition and ordered immediate measures to protect depositors and limit further deterioration, including the immediate suspension of the bank’s operations and the appointment of a temporary administrator. Supervisory reports cited repeated administrative and financial-structure deficiencies that have materially weakened the bank’s indicators, including a delinquency ratio above the market average, accumulated losses since 2020 that have progressively eroded equity, and provisioning shortfalls. The authority noted that an Intensive Supervision Programme has been in place since September 2023, but the bank failed to implement required recovery actions, with issues including repeated breaches of the minimum solvency requirement, high operational expenses, accumulated losses exceeding 50% of share capital, failure to remediate supervisory and audit findings, weak credit risk mitigation, ineffective corporate governance, and non-compliance with required anti-money laundering and counter-terrorist financing risk controls. It also set out liquidation triggers under the applicable framework, including substantial non-compliance with the Intensive Supervision Programme and losses of 50% or more of share capital (or subscribed and paid-in capital) that cannot be covered by reserves. In coordination with the Deposit Insurance Corporation (COSEDE), a structured plan has been prepared for reimbursing insured funds, with covered depositors to receive their money within the established timelines once a liquidator is appointed.
Superintendencia de Bancos de Ecuador 2025-03-11
Superintendence of Banks of Ecuador suspends Banco Amibank’s operations and appoints a temporary administrator
The Superintendence of Banks of Ecuador suspended Banco Amibank S.A.'s operations and appointed a temporary administrator due to severe administrative and financial deficiencies. The bank's delinquency ratio, accumulated losses, and solvency breaches have eroded equity, prompting liquidation triggers. In coordination with the Deposit Insurance Corporation, a plan is in place to reimburse insured depositors once a liquidator is appointed.