Financial authorities in Panama are analyzing establishing a fee for regulation and supervision, and modifying aspects such as requirements for licenses for businesses and minimum amounts of capital required to operate.
The adjustments proposed fall into two major areas: the functions of regulation and supervision and legal adjustments for the trust business itself, including topics such as capacities and custodial powers of the Superintendency of Banks of Panama to regulate and supervise fiduciary and trust business enterprises.
According to the Superintendency of Banks, removing the country from the list will be more complex than expected, as not all sectors see it as a priority issue for the economy.
Panama needs to improve legislation and controls in the financial system in order to achieve compliance with the recommendations made by the Financial Action Task Force (FATF).
The Superintendency of Banks in Panama has taken over administrative and operational control of the bank due to its potential illiquidity and insolvency.
From a statement issued by the Superintendency of Banks of Panama:
Based on the provisions of Chapter XVI and Articles 131, 132 and related provisions of the Banking Act, by Resolution 097-2014 of 16 July 2014, the Superintendency of Banks of Panama has ordered the takeover of Administrative Control and Operations of ES BANK (PANAMA), SA effective from July 17, 2014 at 12:00.
Many and varied are the interests which on one hand keep Panama on unwanted lists and on the other try to clean up the country's image as a tax haven.
Strengthening regulatory standards of bodies such as credit unions and the system of bearer shares are part of the changes that need to be made in the financial system in order to improve the country's position on this issue.
Between January and November 2013 credit to the private sector increased by 14% compared to the same period in 2012.
Personal consumption and trade were the sectors that experienced the largest growth in the period under review, beating construction loans and mortgages. Overall, the banking system awarded $24,815,000 in loans to the private sector.
Between January and November 2013, Panamanian banks gave out 14% more loans than in the same period of 2012.
Statistics from the Superintendency of Banks of Panama (SBP), reveal that during the first 11 months of 2013, the National Banking System (SBN by its initials in Spanish) gave out 14% more loans than in the same period of 2012, with its balance being $24.8154 billion.
Up until June 30 the portfolio of construction loans rose to $3.34 billion, $369.1 million more than in the same period in 2012.
Of that total, $136.6 million was used for housing, $490.9 million for commercial shops, $672.4 million for infrastructure and $1.04 million in other buildings, said the Superintendency of Banks of Panama.
From 23 to 27 September, a Panamanian delegation will visit South America in search of new investors who might be interested in participating in the local stock market.
The delegation led by the Ministry of Economy and Finance (MEF), the Superintendency of the Securities Market, the Superintendency of Banks and the Panama Stock Exchange, will visit Santiago de Chile, Lima, Peru and Bogota and Medellin in Colombia.
A comparative analysis of fees and nominal annual interest rates for the first week of August 2013 on credit and financing cards.
From information published by the Consumer Authority of Panama:
Background
"Credit Card: An instrument which is magnetic, electronic or using other technology from the execution of a credit agreement previously concluded between a financial intermediary and another person, in order to facilitate the lease of or to obtain goods and services or obtaining cash from business affiliated to the system. "
New loans issued from January to May 2013 by Panamanian banks totaled $8.85 billion.
Capital.com.pa reports that the amount, "compared to the same period last year represents an increase of 25.9%," according to the latest report from the Superintendent of Banks in Panama (SBP).
"... The rate of increase in the granting of new loans achieved by the end of May 2013 is 22% more than the growth registered in 2012 compared to 2011, when this segment increased from $7.2509 billion to $8.8489 billion. "
Banking and financial sectors have raised the need to devise a strategy to turn the country into an international financial center.
Alberto Diamond, Superintendent of Banks in Panama, said that as a society, they should establish a plan which involves the private sector, the public sector and the regulator. "We need to make a road map," he said.
Prensa.com reports: "The goal, ultimately, is to develop and integrate the capital, securities, insurance and banking markets, creating a system capable of supporting large and small projects, and whose natural vocation would be Latin America."
During 2012, loans to agriculture and fishing recorded an increase of 16.95%, reaching $1.1886 billion.
Although the agriculture and fishing sectors are less favored by the local banking system, during 2012 the amount of loans granted by the National Banking System (SBN by its initials in Spanish) increased by 16.95%, standing at $1.1886 billion, of which, according to figures from the Superintendency of Banks of Panama (SBP), 63%, or $756.2 million, were intended for livestock.
The amended regulations have now been published in the Official Gazette.
The new law regulating the securities market in Panama takes effect from 2 September, establishing how participants in the stock market must operate, and what regulations they must comply with.
The next step will be to turn the Comisión de Valores into a superintendency, which must be done within two months, as required by law.
This figures are a glimpse of this market's potential in Panama, say local financial brokers.
One of the effects of the economic crisis was that thousand of Panamanians rushed to establish their own businesses, causing an increase in micro-credit of 18.7% in the first half of 2009, when compared to the same period of 2008.
An article in newspaper Prensa.com points out that "Mr.