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Best Bank − Ecuador: Banco Pichincha

Nov 1, 2008

Bucking the Trend Ecuador’s Banco del Pichincha is clinging on to a AA+ rating from Fitch subsidiary Bank Watch Ratings, despite global financial crisis and a government that many foreign investors would not have on their shopping lists. In fact, Bank Watch lists political risk as one of the main threats to Pichincha.


"The rating . . . incorporates the positive trends expected despite the uncertainty that exists at a macroeconomic level and the financial system’s vulnerability to government decisions and the economy,” says Bank Watch analyst Patricio Baus.

Fernando Pozo – Pichincha’s general manager and president of the Private Banks Association of Ecuador, as well as the LatAm Federation of Banks – is in talks with the government about the need to provide more flexibility to the banking system, especially at a time when the world faces such a severe economic slump. One of the areas that needs more flexibility, he says, is interest rates. “They must go hand in hand with consumption in order to control inflation and provide economic stability,” Pozo tells LatinFinance....

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