The Superintendency of Banks in Panama has reported that consumer loans amounted to $5.16 billion with four banks hogging 54% of the total.
The four banks holding 54.6% of the personal loans are la Caja de Ahorros, Banco Nacional, Banistmo and Banco General.
Estrategiaynegocios.net reports that "... In first place is Banco General, with 16.7%, managing $860.6 million; second is Banco Nacional, with 15.2%, managing $781.8 million; Banistmo, with a 13.3% market share, has an equivalent of $679.1 million and Caja de Ahorros, with 9.5% has a balance of personal loans of $492.5 million. "
Between January and November 2013 credit to the private sector increased by 14% compared to the same period in 2012.
Personal consumption and trade were the sectors that experienced the largest growth in the period under review, beating construction loans and mortgages. Overall, the banking system awarded $24,815,000 in loans to the private sector.
Between January and November 2013, Panamanian banks gave out 14% more loans than in the same period of 2012.
Statistics from the Superintendency of Banks of Panama (SBP), reveal that during the first 11 months of 2013, the National Banking System (SBN by its initials in Spanish) gave out 14% more loans than in the same period of 2012, with its balance being $24.8154 billion.
A comparative analysis of fees and nominal annual interest rates for the first week of August 2013 on credit and financing cards.
From information published by the Consumer Authority of Panama:
Background
"Credit Card: An instrument which is magnetic, electronic or using other technology from the execution of a credit agreement previously concluded between a financial intermediary and another person, in order to facilitate the lease of or to obtain goods and services or obtaining cash from business affiliated to the system. "
At the end of March domestic credit amounted to $34.338 billion, surpassing by 16% the figure for the same period in 2012.
"The commercial sector claimed the most credit, with a portfolio of $10.2622 billion (22.8%), followed by mortgages, whose portfolio totaled $9.521 billion, up 14.4% from a year earlier" , reported Prensa.com.
"The third most important activity was consumption, with a portfolio of $6.4063 billion, 10.5% more than the previous year."
In March the balance of new bank loans reached $34.339 billion, which is $4.729 billion more than earned in the same period of 2012, when the total was $29.61 billion.
Figures from the Superintendency of Banks in Panama (SBP), reveal that most of the growth in lending balances is in the private sector, with $4.3329 billion, while the public sector only received $396 million.
Analysis has been conducted on the composition of the loan portfolio to buy vehicles, one of the fastest growing sectors in recent years.
In the past five years, auto financing in Panama has been increasing, in February Panamanian banks provided loans of this type worth $813 million.
58.6% of these loans were granted for cars worth up to $15,000. According to a survey on the car market conducted by the Directorate of Financial Studies of the Superintendency of Banks, appropriations for the automotive sector in Panama have increased in proportion to the growth of the economy. However, experts believe that although in 2013 sales will grow, they will do so at a rate lower than in previous years.
In Panama trade sector loans have increased by 40%, those for personal consumption by 49%, mortgages 48%, and construction 25.4%.
In the first three months of 2012, banks in Panama have disbursed $4.9283 billion in new loans, which means an increase of 35.4% or $2.2879 billion compared to the same period in 2011.
"The sectors that have shown the greatest growth in terms of attainment of fresh money in the first quarter of 2012 were: commerce 39.9%, representing $7.97 billion dollars, personal consumption (49.2%, $157 million), mortgage (48.1%, $150 million) and construction (25.4%, $83 million)", reported Prensa.com.
In Panama, consumer credit closed 2011 with a portfolio worth $5,702.9million, an increase of 8% compared to 2010.
Personal loans reflected an increase of 10% compared to 2010 followed by credit cards with an increase of $71.3 million. Meanwhile, vehicle purchase loans increased by 10%.
"This year the Ministry of Finance projected a lower growth of about 7%.
At the close of July, $11 billion worth of new loans were granted, 17% higher than in the same period last year.
Among the different sectors of the economy, mining, livestock and fisheries were those receiving the most new loans.
"The biggest increase registered, in terms of percentages, was in mining and quarrying, where $15.2 million in new loans was granted, up from $12.3 million compared to figures from the same period in 2010.
The statistics on loans granted in the first months of the year reflect the economy's recovery.
In the last two years, Panama's banking system loosened the restrictions it was forced into placing by the international financial crisis and as a result credit, especially to personal consumers, has begun increasing.
In the first two months of 2011, personal loans recorded a 9% increase relative to the same period last year
May 2009 saw $1.05 billion in new loans, $408 million less than in the same period of last year.
Industry and commerce where the most affected sectors of the economy, with drops in new loans of 66% and 60%, according to data by the Banking Superintendence of Panama.
María De Gracia writes in Pa-digital.com.pa: "According to sources of the banking industry, the drop is a result of banks being more selective with new customers, and greater restrain when granting a loan to economic sectors with negative growth".
According to data from the Bank Superintendent of Panama, the balance of defaults and past due accounts reached $37.3 million in 2008.
María de Gracia writes in Pa-digital.com.pa: "The loans that show the highest default rate are those for cars that have a price of up to $15,000, with $28 million, followed by the ones of up to $30,000, with $7.2 million."