The financial system and its role in the economic and social development of Ecuador

Abstract

The role played by financial institutions in the country's economy is important, since through them an efficient allocation process is carried out, in regard to economic resources, promoting productive investment. Financial markets that seek to direct savings towards productive investments and allow companies and individuals to have investments. In such a way that people who start saving have an excellent remuneration for their money and companies can have said money to make their investments. That is why the financial system plays a very important role in the economic and social development of countries when managing risks and channeling capital for consumption and investment. On the other hand, international agreements admit that the objectives that have to do with sustainable development and the commitments assumed by the country can allow the role of the financial system to be presented according to the dynamism and demands of each market to which it is estimated to arrive In this way, the objective of this study is to analyze the financial system and the role it plays in the economic and social development of Ecuador, for its fulfillment a qualitative methodology is used, through a documentary study, which allowed knowing the criteria of different authors, giving as a result that the financial system is important for the economic and social development of each country, since it allows generating investments in business.