Monetary impact of COVID 19 on the popular and solidarity economy institutions of Ecuador, year 2021

Abstract

The analysis of the research project developed in the Popular and Solidarity Financial Sector of Ecuador (SFPS) with the theme: "Financial Impact of COVID 19 on the Institutions of Popular and Solidarity Economy of Ecuador, year 2021", aimed to determine the effects of COVID-19. in the financial field of the Popular and Solidarity Financial Sector during the period 2021, through econometric analysis of structural change, for the determination of financial strategies that strengthen the management of deposits, placement and financial indicators and those managers make sound decisions against the global health crisis.

The methodology used has a quantitative and qualitative approach which allows a detailed understanding of market attitudes and behaviors, generating numerical or rating information to convert into statistics to make business decisions. Non-experimental correlational research is applied, with bibliographic, documentary, and descriptive research; With books, brochures, magazines, manuals of the Financial Institutions of the Popular and Solidarity Economy, the population was taken as the basis of the 522 institutions that make up the SFPS of different cities and provinces of the country. Ecuador. During the development, the analysis of the resources in deposits and placements presented by the Financial Institutions of the Popular and Solidarity Economy was conducted. After two years of weak economic growth, 2021 closed with a contraction of the Gross Domestic Product (GDP) of -8.10%, reflecting the impact of the pandemic in Ecuador. The National Financial System obtained a positive variation of 10% in deposits and 15% in placements. As of May 2021, a sustained reduction in interest rates was observed in all credit segments. The SFPS represents a third of the financial intermediation activity of the private national financial system, concentrating 29.6% of deposits and 30.9% of placements. The research answers the question: What has been the monetary impact caused by the COVID-19 health crisis, in the Popular and Solidarity Financial Sector of Ecuador, year 2021? Concluding; the levels of financial intermediation of the SFPS at the beginning of the pandemic (March 2020) started with a value of 97.52% and as of December 2021 reached 88.69%, with a decrease of 2% in relation to 2020; the indicator tended to fall by 8.83%. In relation to the delinquency indicator, as of September 2021, it had a slight downward trend, however, in previous periods there were spikes in delinquency. The liquidity indicator that reflects the availability of resources to make your payments immediately as of December 2020 was 28.93% compared to 2021 of 27.62% with little volatility. However, the solvency of the SFPS as the ability to meet its debts and obligations was 18.97% as of December 2020 and by the end of 2021 it reached 17.48%.