38 Ecuador Credit Cooperatives Were in Forced Liquidation as of May

Ecuador's credit-cooperative sector remains under pressure, especially among smaller institutions.

As of May 5, 2026, 38 credit cooperatives were in forced liquidation, according to information from the Superintendencia de Economia Popular y Solidaria.

Where The Liquidations Are Concentrated

The liquidation processes are heavily concentrated in the central Sierra and major cities.

• Ambato accounts for 36.8% of the processes
• Quito accounts for 26.3%
• Cuenca accounts for 21.1%
• Guayaquil and Portoviejo together account for 15.8%

Together, Ambato, Quito and Cuenca represent more than eight out of every ten liquidations.

Why Cooperatives Are Closing

The pressure comes as delinquency rises above 8%, compared with about 3% in private banking.

The issue is not only missed payments. Bad loans are also weighing more heavily against cooperative capital.

In segment 1, where cooperatives have more than $80 million in assets, nonperforming loans represented 18% of equity in 2020. That figure reached 44% in 2025 and 45% in the first quarter of this year.

In segment 2, the ratio moved from 18% to 38% over five years. In segment 3, it increased from 30% to 40%.

Two New Liquidations This Year

During 2026, two cooperatives entered forced liquidation: Cooperativa Incoop in February and Cooperativa Cariamanga in March.

The SEPS cited deterioration in solvency and liquidity indicators below legal minimums, high delinquency levels and administrative deficiencies that put member and depositor funds at risk.

What This Means For Expats

Credit cooperatives are common in Ecuador, and some offer attractive deposit rates compared with traditional banks. The tradeoff is that not every cooperative has the same strength, governance or risk profile.

If you keep money in a cooperative, check the institution's segment, financial indicators and current regulatory status. Higher interest is not automatically a bad sign, but it should make you ask more questions before placing a large balance there.