Banks Win Out in Panama

In response to a request put forward by the banking association, the government has decided to eliminate from the banking modernization bill the proposal to modify the banking license scheme.

Monday, March 5, 2018

The initial proposal by the Executive Power was to replace the current system of banking licenses with another with a single license, and the regulator would supervise each bank depending on the type of activity.  

Given this initiative, the Banking Association of Panama expressed its opposition, arguing that "... the elimination of the international license would be an extremely damaging measure for the future of the banking sector, and contrary to the deep interest of many banks to remain in this area." reports that "...The union said the initiative would make the area less competitive for those operating in Panama, "because of attractive elements such as the international license," something that would be a "contradiction" in a bill that seeks to increase the competitiveness of the financial center."

The MEF also decided to withdraw a proposal that worried insurers, which consisted of opening up the market for captive insurers, which are created by large economic groups to manage their own risks. What was intended was that they could also insure local risks. 

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If the bill promoted by the Executive thrives in the Legislature, companies that issue credit cards and who are not part of the already regulated "financial groups ...

New Banking Legislation in Panama

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More Power for Superintendency of Banks in Guatemala

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The amendments to the Law on Banks and Financial Groups, which provide greater control for the country's financial system, are now in effect.

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Law Reorganising Panama's Financial System Approved

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Act 311 establishes a system of coordination and institutional cooperation between local financial control centers and creates a Superintendency of the Stock Market in the reform of Decree Law 1 of 1999 and Act 10 of 1993.

A statement by the National Assembly of Panama says that the financial system will be reordered and a Superintendency of the Stock Market created after the assembly passed the bill on its third reading.

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