The coronavirus has left an economic impact in several countries. For this reason, some governments are developing exceptional measures to mitigate its effects. For example, the suspension of tax and mortgage payments to lessen the economic pressure on small businesses and households.
In the United States, interest rates were reduced to almost zero and a US$700 billion stimulus program was launched in a bid to protect its economy, says Mario Miranda, director of finance at MonederoSMART.
Entities in the International Banking Center generated profits of $670 million in the first four months of the year, 11% more than in the same period in 2017.
The April result for the Banking Center, which includes general and international license banks, shows growth of 10.6%.The increase in Net Income is the result of increases in non-recurring financial income, such as the purchase and sale of securities and transactions with derivative instruments, and on the other hand, a decrease in provision expenses, as a result of the entry into force of IFRS 9, which has allowed banks to make an adjustment against retained earnings, informed the Superintendency of Banks.
Entities in the International Banking Center in Panama generated profits of $529 million in the first quarter of the year, 10% more than in the same period in 2017.
The Superintendency of Banks reported that "...The March result of the International Banking Center (CBI), which includes general and international license banks, shows profit growth of 9.5%.The increase in Net Income is the product of increases in non-recurring financial income, such as the purchase and sale of securities and transactions with derivative instruments."
Entities in the International Banking Center generated $183 million in profits in January 2018, 40% more than in the same period in the previous year.
From a statement issued by the Superintendent of Banks:
The January results from the Banking Center, which includes general and international license banks, shows growth of 40.1%.The increase in Net Income is the result of increases in non-recurring financial income, such as the purchase and sale of securities and transactions with derivative instruments; On the other hand, the decrease in the provision expense, as a result of the entry into force of IFRS 9, has allowed banks to make an adjustment against retained earnings, which has favored the performance of the first month of the year.
The bill put forward by the Varela administration proposes regulating the operation of crowdfunding platforms, and creates the concept of Family Offices of Patrimonial Administration.
From a statement issued by the Ministry of Finance:
The Cabinet Council approved on Tuesday the Bill for the Modernization of the International Financial System of Panama, which seeks to introduce new solutions and services to strengthen supply and increase the competitiveness of Panama as a financial services platform.
In the first eight months of the year the profits of the International Banking Center totaled $1.266 million, 13% more than in the same period in 2016.
Growth of the local credit portfolio to the private sector in the National Banking System was 7.8% in August 2017, compared to the same period in 2016.
By credit destination, the sector that reported the greatest expansion was that of companies in the real estate sector and of individuals with business activities.The credit business has kept up a positive rhythm in economic sectors that show dynamism, such as construction (13.0%), personal consumption (9.8%), industries (7.1%), livestock (8.7%) and mortgages (9.0%), among others.
Between March 2016 and the same month of this year there have been increases of up to 0.6% in interest rates on bank loans for commercial activities.
According to the Superintendency of Banks, during the period between March of last year and the same month in 2017, interest rates registered an average increase of 0.4% for economic activities in retail trade and wholesale trade in the Colon Free Zone.
In disagreement with the only proposal presented so far, depositors of the intervened Balboa Bank & Trust are preparing their own offer to acquire the bank.
In 2016 entities in the banking system managed to increase their assets by 4% and their loan portfolios by 8% compared to 2015.
The annual report by the Superintendency of Banks in Panama includes the main results for the banking center and the banking system during 2016.
The report states that"...Credit to the private sector remains favorable in the retail banking segment and corporate credit in the interim construction segments.Trade credit has a lower growth rate due to reductions in the Colon Free Zone. "
Fitch Ratings, "Reputational risk events could put broad pressure on funding access and damage Panama's position as a regional financial center. "
From a report by Fitch Ratings:
Fitch Ratings-San Salvador/New York-15 March 2017: Reputational and conduct risk will remain key issues for Panamanian banks in 2017 owing to the interconnectedness of the regional financial system and ongoing high profile corruption cases that have affected multiple countries in Latin America, says Fitch Ratings. Reputational risk events could put broad pressure on funding access and damage Panama's position as a regional financial center.
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.
Growth in income and increased foreign investment explain part of the increase from the $49,730 million worth in deposits in August 2010 to $73,302 million in the same month this year.
The Superintendency of Banks of Panama (SBP) reported that deposits which grew the most in the period in question are internal deposits in the International Banking Center (IBC) with a balance of $44.6 million, followed by individual deposits, with $34.1 million and finally government deposits with $6.4 million.
The agreement for Panama not to feature in Colombia's gray list establishes a deadline of one year for the signing of an agreement on double taxation and exchange of financial information, and is a sign that sooner rather than later, the Panamanian corporate and financial center will lose their comparative advantages.
EDITORIAL
International pressure to establish a comprehensive and transparent flow of tax information, continuously increases with the OECD as a powerful locomotive, and puts up against the wall countries such as Panama where for many years international financial centers have existed with specialized services which attract corporate finance companies from around the globe with tax benefits and opacity in related information.
Analysis by Fitch Ratings projects that banks in the region will maintain strong balance sheets and have stable profitability in 2014.
Excerpted from Fitch Ratings:
Differential Growth and Opportunities: Low financial depth, in most systems, continues to provide significant opportunities for expansion of bank balance sheets; although this is limited by low average income levels.