Panama: Corporate Credit Decreases 16%

Between April 2020 and the same month of 2021, corporate credit to the local sector decreased 16% from $26,628 million to $22,386 million.

Tuesday, June 15, 2021

According to the report "Informe de Actividad Bancaria - Abril 2021", prepared by the Superintendence of Banks of Panama, consumer credit showed a 0.9% increase driven by mortgage credit.

The total non-performing loans rate of the International Banking Center (+30 days), stood at 3.6% in March 2021. As for the portion of the portfolio with arrears between 30 - 90 days, the indicator maintains a level of 1.7%, while loans in non-performing condition (arrears greater than 90 days), the indicator is 1.9%, highlights the official document.

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The figures reported for April regarding the delinquency rate are supported by the relief measures dictated by the regulation, where there is a sort of freeze in the delinquency percentage, which is possibly not being computed. The low economic activity and the high level of unemployment will undoubtedly lead to a possible deterioration of the portfolio when the moratorium expires, according to the report.

The aggregate figures detail that as of April 2021, credit to the local sector recorded a balance of $54,100.8 million, with a decrease of $1,670.8 million (-3%) compared to the end of April 2020. This decrease is due to the lower performance of credit to the private sector.

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Costa Rica: Agricultural Credit Arrears Increases

May 2019

In the last two years, non-performing loans to the agricultural sector increased from 2.4% to 5.9% between April 2017 and the same month in 2019.

Figures from the General Superintendence of Financial Entities (Sugef) indicate that the increase reported in the arrears of agricultural loans includes operations with delays of more than 90 days, as well as operations that are in judicial collection.

Crisis is Reflected in the Financial Sector

March 2019

Since the political and economic crisis began in Nicaragua, credit placement has fallen, while delinquency and loan restructuring have increased.

Data from the Superintendence of Banks and Other Financial Institutions (Siboif) indicate that between April 2018 and February 2019, a period during which the political crisis in the country has deepened, the fall in the net credit portfolio was 16%.

Complicated Economic Scenario

September 2018

The deterioration of the economy and rising unemployment are the main reasons behind the difficulties faced by companies and individuals in Costa Rica in paying back their bank loans.

According to figures from the General Superintendence of Financial Entities, between January 2017 and July 2018, the percentage of loans in defaults for more than 90 days or in judicial collection, went from 1.65% to 2.51%, showing an upward trend in recent months.

Bank Defaults on the Rise

June 2018

From June 2017 to May 2018, the average default rate of the Costa Rican financial system's credit portfolio increased from 1.36% to 2.14%.

According to figures from the General Superintendence of Financial Institutions (Sugef), between April and May of this year, Banco Nacional de Costa Rica (BNCR) saw an increased in its arrears of greater than 90 days and judicial collection from 2.65% to 4.18%, thus surpassing the 3% that is established as the prudent maximum limit.