Small Ecuadorian Private Banking

The purpose of this research has been to analyze information extracted from official sources regarding accounts, financial indicators of small private banks and macroeconomic indexes of Ecuador since the adoption of the US dollar as the national currency in order to determine which factors are most related to the economic and financial profitability of small banks. Through a panel data analysis using Ordinary Least Squares with fixed effects and random effects. The results showed that time deposits, gross portfolio, leverage levels and financial intermediation are internal factors that influence the profitability of small banks. Macroeconomic factors associated with profitability measures include the inflation rate and annual gross domestic product.