Transfer of assets from one private financial institution to another: analysis of the sale of Banco del Pacífico.

Abstract

The Ecuadorian financial system, composed of public and private financial institutions, has as its main function the raising and placement of resources to boost the national economy. Banco del Pacífico, a private financial institution founded in 1972, became part of the public administration in 2001 while retaining its essence. However, in 2021, the government opted to put it up for sale in order to allow the entity to be managed according to its business approach without state intervention. Despite receiving proposals from around 30 financial groups globally, none of the parties were able to reach an agreement due to external economic factors, such as inflation, country risk, volatile interest rates in international markets and political instability.