Credit demand grows in Ecuador, banking sector anticipates more applications

Demand for credit in Ecuador is on the rise, with private financial entities reporting an increase in loan applications during the second quarter of 2026. This upward trend is projected to continue into the third quarter, according to the Central Bank of Ecuador (BCE).

The survey conducted by the BCE between July 7 and 17, 2026, involved 23 private banks, 334 cooperatives, and four mutuals. The results indicate that while overall credit demand is strengthening, lending standards have seen a slight tightening. Banks, however, are planning to relax their requirements in the upcoming quarter, whereas cooperatives and mutuals intend to maintain their current, more cautious approach.

This surge in demand is fueled by various sectors. Businesses are seeking credit primarily for working capital needs and to navigate the current economic climate. For households, the increased interest in loans is linked to financing needs, consumer confidence, and the acquisition of fixed assets and vehicles, particularly for consumer and housing loans.

While private banks observed the tightest restrictions on productive credit in the second quarter, they expect to ease these conditions. Conversely, cooperatives and mutuals applied stricter controls on productive credit and microcredits, and anticipate even more stringent measures for microcredit and consumer loans in the third quarter. The BCE's findings suggest a dynamic credit market, with differing strategies among financial institutions as they respond to economic conditions and borrower needs.