ECUADOR BANK CLOSURE FUELS TENSIONS

Escalating political tensions between Ecuador's coast and highland regions are posing a further threat to stability, after the closure of Ecuador's second largest bank. Traditional economic and political rivalry between coast and highlands has been exacerbated by Ecuador's growing banking crisis. Eight of the nine banks which have closed or been taken over by regulatory authorities in the last seven months are based on the coast. Coastal bankers have accused the government of concentrating public sector funds in highland banks and criticised the central bank for not providing them with more and cheaper emergency funds.