Suspension of contracts, uncertainty about the economic future and reduction of salaries, are some of the factors that have affected the banks in Panama to place fewer loans in this context of health crisis.
The amount of new loans granted by Panamanian banks was $589 million during May this year, a 26% reduction compared to what was reported in April 2020.
In Panama, a group of businessmen from the Colon Free Zone have expressed concern about the bank's intervention, because although it was under investigation, it was allowed to engage with several companies.
As of September 9, local authorities took over the operational and administrative control of AllBank, Corp, arguing that the group of "shareholders did not respond in a timely manner to the requirements of the corrective actions" that were instructed. In October the Superintendence informed that the institution will continue to be taken, in this case until November 8.
Until November 8, 2019, the operational and administrative control of AllBank, Corp. was extended, an entity that was intervened because its " shareholders did not attend in time and opportunity the requirements of the corrective actions."
On February 14th and 15th, representatives of banks, international financial institutions and risk rating agencies will meet in Panama City to discuss issues related to the sector.
The event called "International Banking Congress for Regulators & Bankers," will be organized by the Superintendence of Banks of Panama (SBP) and seeks to address issues such as Basel III, prevention of money laundering, de-risking, new risks facing the industry, financial innovation-Fintech, cybersecurity, among others.
Increased operating costs because of risk controls imposed by the US have led to correspondent banks avoiding working with small banks.
Maintaining small structures at the same time as paying high costs in order to meet the standards required internationally, primarily in the United States, is no longer viable for banks who want to remain profitable.
The Superintendency has reiterated that the decision taken to seize administrative and operational control of Balboa Bank & Trust is an isolated case, separate from the rest of the banking system.
From a statement issued by the Superintendency of Competition:
The Superintendency of Banks in Panama recommends to the community to only pay attention to official communications issued by the institution and to ignore unfounded and malicious rumors that are circulating or being published on social networks and other unauthorized media. We reiterate that such unfounded stories, could incur the commission of offenses, as provided in Section 260 of the Penal Code.
In response to rumors of more interventions into financial institutions, the Superintendency of Banks in Panama says that they are unfounded, highlighting the strength of the banking system.
From a statement issued by the Superintendency of Banks of Panama:
The Superintendency of Banks in Panama made public knowledge, that as a result of taking operational and administrative control of Balboa Bank & Trust and its subsidiaries a number of comments and news stories have arisen which do not have any foundation regarding future actions that may be taken by this institution on other banks, or conditions of vulnerability of some institutions in our banking system.
The International Banking Center reported $118 billion in assets in 2015, $10 billion more than was recorded in 2014.
In 2015 the International Banking Center in Panama reported total assets in the order of $118,477 million, 9.2% more than the amount reached in 2014, when the figure reached $108,419 million, according to figures from the Superintendency of Banks in Panama.
The bank acquired 70% of the shares of Universal Bank and annulled the license which it had been granted to operate in the microfinance segment.
The Superintendency of Banks authorised CANAL BANK, SA (BMF) General Banking License, to change its name from CANAL BANK, SA (BMF) to CANAL BANK, SA and canceled and annulled the banking license for Microfinancing granted to CANAL BANK, SA (BMF).
Six new institutions want to join the 94 that make up the banking center which operates in the country, whose assets grew by 35% in the last three years.
Data from the Superintendency of Banks indicates that "... the banking center currently has 94 entities: 2 official banks, 18 Panamanian banks with a general license; 29 foreign banks with a general license, 29 internationally licensed and 16 representative offices.
A reorganization process has begun to verify the entity's assets and its real value, and leave it in condition for its eventual sale.
As part of the reorganization process ordered by the Superintendency of Banks which will take 120 days, bank customers with accounts up to $2,500 will be allowed to make withdrawals. When the reorganization process is complete, one of the possible scenarios is the eventual sale of the entity in which local market banks could be interested, according comments made by industry sources to Prensa.com.
The company operated by the Superintendency of Banks has enabled from June 15 receipt of loan payments and balance inquiries in seven of its branches in the country.
From a statement issued by Banco Universal:
Banco Universal informs its customers that, by order of the administration in charge, from the day Monday, June 15, they may come to our branches:
Authorization has been given to Grupo Prival de Panama to complete the transaction to acquire 100% of the shares of Banco Bansol in Costa Rica.
The financial group of Panamanian origin which also now operates in El Salvador, in addition to Panama, and its incursion into Costa Rica aims to strengthen its process of regionalization. Prival sought approval from the appropriate authorities in October 2014 for the purchase of Bansol.
The Superintendency of Banks in Panama has extended by 30 days the measure to take administrative and operational control of Banca Privada D'Andorra which was decided in March.
From a statement issued by the Superintendency of Banks of Panama:
Through SBP Resolution No. 0063 of April 7, 2015 extension has been given to the SEIZURE OF ADMINISTRATIVE AND OPERATING CONTROL OF PRIVATE BANKING OPERATIONS OF D'ANDORRA (PANAMA), SA, for a period of thirty (30) days.
The Superintendency of Banks has given the order for Administrative and Operational Takeover after the US government accused the Group BANCA PRIVADA D'ANDORRA of alleged money laundering.
From a statement issued by the Superintendency of Banks in Panama (SBP):
By Resolution SBP-0053-2015 of March 10, 2015, the Superintendency of Banks of Panama ordered the taking of Administrative and Operational Control of BANCA PRIVADA D'ANDORRA (PANAMA) SA, effective from two (2) oclock meridian time , on Wednesday, eleventh (11th) of March 2015, based on the provisions of Article 16 paragraph 4, Literal I; Article 131 and subsequent Decree Law No. 9 of 1998, as amended by Act No. 2 Decree of 2008 and whose Consolidated Text was adopted by Executive Decree No. 52 of 2008 (Banking Law).