SEPS Data Show 38 Credit Cooperatives in Forced Liquidation as Delinquency Exceeds 8%

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

The concentration is heavily weighted toward the central Sierra and major cities.

Liquidation Distribution

Ambato, Quito and Cuenca together account for more than eight out of every ten liquidation processes.

Credit Quality Pressure

Sector delinquency exceeds 8%, compared with approximately 3% in private banking.

The capital-pressure metric has also deteriorated by segment:

Segment 1 includes cooperatives with more than USD 80 million in assets.

New 2026 Cases

Two cooperatives entered forced liquidation in 2026:

• Cooperativa Incoop in February
• Cooperativa Cariamanga in March

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

What To Watch

• Whether additional segment 2 and segment 3 institutions enter forced liquidation
• Whether delinquency falls below the 8% level
• Whether SEPS increases intervention or disclosure around weak entities
• Whether deposit-rate competition rises as cooperatives seek liquidity
• Whether the cooperative cleanup affects credit availability for small producers, merchants and microenterprises