The Ecuadorian banking system collapsed in 1999, and the
banks left standing are still reeling from the aftershocks. In
July, the Ecuadorian government shut down the country's largest
state-owned bank, Filanbanco, because of severe liquidity
problems. Filanbanco reported more than $100 million in losses
for 2000 despite a $300 million capital infusion from the
central bank. Thousands of depositors were left with devalued
accounts and frozen assets until Banco Bolivariano agreed to
help out. Along with several other domestic banks, Bolivariano
assembled a $266 million trust to help Filanbanco meet its
obligations to account holders. Considering this added capital
drain on Banco Bolivariano and the international community's
exceedingly dreary outlook for the Ecuadorian banking system,
the bank still managed to do noticeably well this year.
Bolivariano nearly doubled its deposits this year to $283
million, raising its share in...
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