Central bank obliges banks to repatriate money

Bnamericas Published: Monday, June 01, 2009
Ecuador's central bank has introduced a new rule obliging banks to repatriate some of the money they have invested overseas, President Rafael Correa said during the weekend. The rule, called "coefficient of domestic liquidity," states that financial institutions have to invest 45% of their reserves in the domestic market. The new rule from the central bank comes to complement a recently approved rule that states that 25% of banks' assets have to be invested in highly liquid instruments, local independent consultant Alejandro Sarzosa told BNamericas. "The party is over for bankers, they can't hold US$4bn overseas anymore. They will have to repatriate some US$1.2bn," Correa said on Saturday. The head of state also dismissed arguments that banks' money is safer abroad, given the ongoing international crisis, local paper Expreso reported. The Ecuadorian government has adopted a confrontational stance towards banks in the last few weeks, and has called on them to reactivate lending.

To continue reading, subscribe to BNamericas to get all the information in this article and access to related news items and reports.

Subscribe to BNamericas and gain access to thousands of project profiles, key contacts and news.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

  • Project: Terra Cotta
  • Current stage: Blurred
  • Updated: 5 days ago
  • Project: Zulema
  • Current stage: Blurred
  • Updated: 5 days ago

Other companies in: Banking

Get critical information about thousands of Banking companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Banco Santander Río S.A.  (Santander Río)
  • Banco Santander Río is the Argentine unit of Spanish banking giant Banco Santander. It offers products and services in the areas of personal, corporate, business, agro and SME b...
  • Company: Banco BTG Pactual S.A.  (BTG Pactual)
  • Brazilian bank Banco BTG Pactual S.A. is Latin America's largest investment bank. It provides a range of financial products and services related to commercial banking operations...
  • Company: Banco de Crédito del Perú S.A.  (BCP Perú)
  • Peru's Banco de Crédito (BCP) is the largest bank in the country and part of Peruvian financial group Credicorp. BCP offers a broad range of banking products and services to ind...