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.
At the end of May of this year, the country reported just over 805,000 cards in circulation, 2% less than was reported in the same month in 2017.
The decrease recorded in the fifth month of this year is due to the behavior of the number of cards circulating in the market of Banco Financiera Comercial Hondureña market, since the units corresponding to this financial entity fell from 235,008 in May 2017 to 207,636 reported in the same month in 2018.
From January to June of this year net profits of banking entities totaled $116 million, registering an increase of 7% with respect to the same period last year.
According to figures from the National Commission of Banks and Insurance (CNBS), the increase in net income registered between the first half of 2017 and the same period this year was 7%, growing from $108 million to $116 million.
The financial group G & T Continental has obtained a general license to expand the services it provides in Panama, where it plans to strengthen its corporate and private banking area.
The financial institution started operations in Panama in July 2008 under the name of Banco Financia, S.A. (BMF) and in 2009 changed its name to Banco G & T Continental (Panamá) S.A.
Although profitability of the entities is adequate, Fitch Ratings is not ruling out pressure on performance because of increased spending on credit provisions and lower growth.
From a report by Fitch Ratings, III quarter of 2016:
Concentrated financial system has adequate profitability and capitalization in Regulatory situation in process of strengthening
Fitch foresees returns for Nicaraguan banks, however the result will not be as good for the banking industry in Panama, Guatemala or El Salvador.
From Fitch's report "2017 Outlook: Central American and Dominican Republic Banks"
The 2017 Central American bank rating outlook is stable for 2017, reflecting slight changes in growth and financial performance, according to a new Fitch Ratings report. The evolution of some factors, such as interest rates and private investment, or the emergence of events that could increase reputation risk could alter the banking outlook.Stable Rating Outlook: The ratings of most banks in the region have a stable outlook, reflecting the fact that their credit profile will not undergo significant changes in Fitch's base scenario.Movements in the ratings will be derived mainly from adjustments in ratings of parent banks or sovereign ratings, or of unanticipated events.
Moody's warns of the risks faced by banks in Central America in the context of a rising trend in interest rates and dollarization of their loan portfolios.
From a report by Moody's:
Mexico, September 14, 2016 -- Banks in Central America face rising asset risks as interest rates look set to rise in the region, pushing up debt service costs for borrowers, according to a report from Moody's Investors Service.
On October 12 and 13 representatives from the banking and financial sector will be gathering together in Panama City to discuss issues relating to regulation, business and investment.
The International Finance Summit is an event being organized by the Banking Association of Panama and will be held at the Hotel Trump Ocean Club Convention Center.
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.
After the bank was taken over because of its inclusion in the Clinton List drawn up by the U.S. Treasury Department, the Superintendency of Banks has ordered its reorganization and sale to another bank.
From a statement issued by the Superintendency of Banks in Panama:
Through Resolution SBP-0116-2016 of July 1, 2016, the Superintendency of Banks has ordered the reorganization of Balboa Bank & Trust Corp., effective from the date July 4, 2016 at 2:30 pm, taking into consideration the recommendations of the Interim Administrator.The reorganization of the bank aims to fulfill three basic objectives:• To protect the best interests of depositors;• To minimize any loss of value of the bank to the detriment of depositors and•Reduce any adverse impact on the banking system. The decision to reorganize the bank will allow choices to be made that aim to give greater security to depositors and creditors of Balboa Bank & Trust Corp. for an early normalization of the situation in the bank and access to all of its funds.
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 sale of Citibank operations in El Salvador to Honduras' Grupo Terra has been formalized, with the insurer SISA included in the transaction.
From a statement issued by the Stock Exchange of El Salvador:
It was reported that subject to regulatory approvals from the competent Salvadoran authorities, Inversiones Financieras Citibank, S.A. has sold to the company designated by the Terra Group, all of its shares in Citi Tarjetas de El Salvador, S.A. de C.V.and Banco Citibank de El Salvador, SA and that Citibank Overseas Investment Corporation and Citibank Investments, SA, sold the company designated by the Terra Group its minority stake in Cuscatlán Valores, SA de CV Casa de Corredores de Bolsa.
Fitch predicts a difficult environment for Honduran banks and loan growth prospects in single digits in 2016.
The ratings of Banco del Pais, SA (Banpaís), Banco Davivienda Honduras, SA (Davivienda) and Banco de Desarrollo Rural Honduras (Banrural) are based on the support of their parent companies. The ratings Banco Financiera Comercial Hondureña SA (Ficohsa), Banco Atlantida, SA (Atlantis) and Banco Financiera Centroamericana, SA (Ficensa) derive from their intrinsic profile.
The Liquidation Board announced that as of November 30 services will be provided in three banks to account holders with deposits and credit operations with the bank currently in liquidation.
From a statement issued by the Liquidating Board of Banco Continental:
The Liquidation Board of Banco Continental SA, under forced liquidation.
Reports:
For customers who have deposits and credit transactions with the bank in liquidation, whose financial services are now being normalised, the procedure for services is as follows:
It has been announced that the Guatemalan bank has acquired assets belonging to the Honduran group estimated at $108 million.
As part of the process of forced liquidation of Banco Continental, which began on October 12, the Bank founded in Guatemala acquired 32% of the assets, which has an estimated total value of $225 million.