BCE Survey Points To Stronger Q3 Credit Demand With Tighter Screening

Demand is rising, approval is not fully loosening

The Central Bank of Ecuador's Credit Supply and Demand Outlook Survey indicates that private-sector financial institutions expect credit demand to increase in the third quarter of 2026.

The survey was conducted between July 7 and July 17 and included 23 private banks, 334 savings and credit cooperatives, and four mutuals. Institutions reported that new credit applications increased during Q2 and expect the upward trend to continue.

At the same time, lenders reported a slight tightening in standards for approving new applications. For the period from July through September, financial institutions said restrictions on loan delivery would generally remain in place.

Where the pressure is concentrated

Private banks reported the lowest level of restriction and expected to ease standards during Q3. Cooperatives and mutuals reported adjustments to approval conditions and expected that trend to continue.

The most significant restrictions reported by private banks were in productive credit. Cooperatives and mutuals identified productive credit and microcredit as the most restricted segments, with tighter control expected in microcredit and consumer lending during Q3.

Business implication

The survey points to a two-sided credit market. Demand is improving, but access is still being filtered through lender risk assessments and the economic outlook.

For companies, productive-credit and microcredit applications grew mainly because businesses needed working capital and because of the economic conditions affecting clients. For households, demand for consumer and housing credit was linked to financing needs, consumer confidence, and purchases of fixed assets and vehicles.

The result is not a blanket easing cycle. It is stronger financing demand moving through a still-selective approval environment. For businesses planning expansion, the relevant variable is not only whether credit is available, but also the segment, collateral, risk profile, and lender type that will determine the terms.