Impact of deposits on the financial stability of private banks in Ecuador, period 2022-2024

Abstract

Customer deposits are a fundamental pillar of the financial strength of private banking in Ecuador. However, volatility in deposits and market dynamics can affect the stability of the banking system. The objective is to analyze the impact of deposits on the financial stability of Ecuadorian private banking in the period 2022-2024, with the aim of proposing strategies for improvement. This study adopts a qualitative-descriptive approach with longitudinal documentary analysis, using official sources from the country. Annual series of monetary, savings, and term deposits from the four largest private banks are systematized and compared with the behavior of nominal GDP and unemployment. The results show that deposits grew steadily and very strongly in relation to GDP (r = 0.9996), with term deposits playing a particularly important role. This demonstrates high public confidence in the banking system and confirms that deposits are key to sustaining financial stability during this period.