Internal and external factors related with the ROE and ROA Ecuadorian private banks categorized by size since dollarization

Abstract

After the financial crisis on the end of 90's Ecuador evidenced a noted economic stability since the adoption of the Dollar as legal currency and the monetary politics implemented, besides the Ecuadorian private bank presented a constant grown influenced by various factors. In this context, the present research analyzed the relation that have had as internal factors accounts of private bank, its management indicators, banking sector concentration measures and as external factors macroeconomic variables related with profitability in terms of ROE and ROA of Ecuadorian private banks according its size since the Dollarization was instituted in the country. By means of econometric regressions with information extracted from official sources  and established under a panel data structure were identified as internal factors related with the profitability measures to the debts to pay , accounts receivable, investments, commercial capacity index, liquidity index, leverage index, also the concentration of loans and deposits. Among the external factors the GDP and the oil price resulted being the most relevant variables related with the profitability measures of the private banks.