Sistema financiero en Ecuador, analizado desde el nivel de concentración e índices de rentabilidad

Abstract

Abstract: This paper seeks to determine if level of concentration of the financial Ecuadorian institutions (IFIs) has a direct relation with the profitability. For this, and using the information provided by the Superintendence of Banks and Superintendence of the Popular and Solidary Economy concerning of private banks and cooperatives of credit during the period 2007-2016, it is calculated the index Hirschman-Herfindahl (HHI), in agreement to the assets of every entity; later, diverse financial indicators are used in a linear multiple regression, for establishing the principal determinants of the profitability, where ROE is the explanatory variable. Finally, the coefficient of Pearson's correlation establishes if the profitability is or not directly related with level of concentration of the financial institutions. The results conclude that in both cases exists a negative relation between the concentration and profitability. Therefore, the size of financial institutions does not constitute an important factor for the generation of earnigs.