Financial Concentration and Power Groups: Evidence from City of Cuenca – Ecuador

By Luis Tobar-Pesántez & Santiago Solano-Gallegos (Universidad Politécnica Salesiana del Ecuador)

In Ecuador, as in most Latin American countries, the concentration of income and wealth are a recurring phenomenon, frequently supported by economic policy measures designed to benefit certain minority groups linked to the political leaders of the moment. Historically, the merger between banking and corporate sectors has been a key factor in this phenomenon. In the majority of the cases, economic power groups have obtained financial support to leverage their growth. This trend is reflected in the private sector where a smaller group of companies increasingly generates greater incomes. This research aims to analyze correlation between credit offered by the financial system and incomes generated by production units in the city of Cuenca.

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