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Panama: Latin America’s Financial and Investment Hub
Panama City is a major world center for international banking and related financial activity. The absence of currency exchange controls allows cash to flow in and out of Panama freely, enticing investors to bring their banking activities to Panama.
Panama Financial Hub
International Bank Center
Panama has a well-developed banking system and has become an important international banking hub for years, now the hub has 62 banks in the Bank Center.
Types of Banks in Panama
The Banks in Panama are categorized by the Panamanian Banking Law in three different types of Banks, according to the license granted:
- General License Bank,
- International License Bank, and
- Representation Office License;
- additionally, there are two State Owned banks
State Bank
These banks can be generally viewed as safe and with good ratings.
The State Banks as their name implied are banks owned by the Government of Panama and under the Panamanian Banking Law.
They can perform business only in Panamanian territory.
General License Bank
This license type is the more commonly used among the Banks in Panama, in fact in the List of Banks in Panama, you will find that the 60% of the Banks in Panama are under a General License.
This type of license allows the Bank to do business in Panamanian territory as well as abroad, and therefore the more widely used.
International License Bank
Only 36% of the Banks in Panama are under an International License.
This type of license allows the Bank to do business only overseas Panamanian territory.
The Ministry of Economy and Finance of Panama
MEF´s Mission
To formulate economic and social policy, administer and provide resources for the execution of government plans and programs, promoting the greater well-being of the population.
Minister of MEF
Hector Alexander
Superintendency of Banks of Panama
What is the Superintendency of Banks ?
The Superintendency of Banks of Panama is the official entity in the Republic of Panama that is in charge of banking and fiduciary supervision.
Functions of the Superintendency of Banks
- Ensure that banks maintain appropriate solvency and liquidity ratios to meet their obligations.
- Strengthen and foster favorable conditions for the development of Panama as an international financial center.
- Promote public confidence in the banking system.
- Develop the provisions of the banking system.
- Impose the corresponding sanctions on those who carry out the banking business without being duly authorized.
- Exercise the functions assigned to it by the laws of the Republic.
Panama Banking Law
Liquidity Requirements
All Banks must maintain, at all times, a minimum balance of liquid assets equivalent to the percentage of the gross total of their deposits to be determined periodically by the Superintendency. This percentage shall not exceed thirty five percent (35%) and until the Superintendency decides otherwise, that percentage will be thirty percent (30%).
Banking Supervision
All banks that engage in banking business in the Republic of Panama, are subject to inspection and supervision of the Superintendence to confirm their financial stability and structure of compliance with the provisions of the Banking Law.
Panama Financial Activities
With Superintendent of Banks of Panama
Amauri Castillo and son, at an event of the Panamanian Association of Executives
IDB
Had a special discussion session with The Topic: "The Future of Work" with Mrs. Carmen Pagés, Head of the Labor Markets Division of the Inter-American Develpomnet Bank
FINTECH
Presenting "Fintech" solutions in Panama