The stability of the financial system is fundamental to the economic development of any country, and in Ecuador, the coexistence of private banking, savings and credit cooperatives, and other institutions of the popular and solidarity economy makes the supervision of financial risks even more critical. Proper assessment of financial volatility has become a strategic tool for preemptively identifying potential declines in the health of financial institutions before they manifest fully in financial statements.

Traditionally, banking risk has been evaluated using accounting indicators such as delinquency rates, liquidity, and solvency. However, international experience shows that these indicators often react with a time lag to structural changes in the financial environment. In contrast, analyzing financial volatility allows for monitoring variations in the behavior of financial variables, offering a more timely approach to understanding risks within the financial sector.

As Ecuador faces its unique economic challenges, maintaining oversight of financial volatility will play a significant role in ensuring that potential crises are identified and addressed promptly, thereby protecting both consumers and the overall economy. The article underlines the necessity of moving beyond traditional risk assessment methods to embrace more dynamic metrics that can reflect real-time changes in the financial landscape.