The portfolio of loans for the purchase of vehicles saw its highest growth in the month of August 2013, when it increased by 17% compared to the previous month.
Up until August personal loans totaled $4.728 billion, credit cards $1.137 billion and auto loans $901.5 million.
The consumer loan portfolio alone, as of August, covers 19% of the loan portfolio of the Local National Banking System (NBS) amounting to $36.344 billion.
Loans for the purchase of vehicles grew at twice the rate of consumer loans, which grew by 17% year on year to July 2013.
"There were good results in the placement of credit for cars, very much hand in hand with our Autoshow" said Carlos Brina, assistant manager of Scotiabank.
These type of loans increased the most in the category of consumer credit, which totaled $4.408 million (2.2 billion colones).
In July 2013 the balance on the loan portfolio to the commercial sector was $9,940 million, while in the same month of 2012 it was $7.236 million.
The figures were released by the Panamanian Credit Association. "As of June this year a total of 73,172 active commercial loans was reported, which means an increase of 30.5% compared to the same period in 2012 when there were only about 56,055," reported an article in Panamaamerica.com.pa.
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. "
One third of Panamanians have on average three loans, and they make payments on them with an acceptable default rate.
About 1.2 million Panamanians have loans, of which 85% are employees.
According to Luz María Salamina, general manager of the Panamanian Credit Association (CPA), "... each one of those people involved is granted an average of three loans, which makes Panama one of the most bankerized economies in the region. "
Despite the restriction by the central banking system which has caused a general credit contraction, consumer loans have grown by 22%.
According to data from the Superintendent of Financial Institutions (Sugef), these activities are maintaining an upward trend, despite a slowdown in the national economy. "The growth in both sectors is important because they are together as a whole, 40% of the total credit granted by banks", reported Nacion.com.
The World Trade Report 2013 focuses on trade as cause and effect of the change, and examines the factors shaping the future of global trade.
The world is changing extremely rapidly under the influence of many factors, among which are changing patterns in production and consumption, constant technological innovation, new forms of trade and obviously political policy.
From January to May 22,408 new vehicles were sold in the country, 3000 more than in the same period in 2012.
Prensa.com reports that "although 2013 began with a 3% drop in vehicle sales, which was due to an increase in spending generated by the year-end holidays, and therefore a reduced availability of money, subsequent months have shown gradual increases. "
In late May there were 673,590 active credit cards, while in the same period in 2012 there were 609,357.
The balance of active cards also showed an increase of 17% compared with May 2012, according to a Panamanian Credit Association (CPA). "The balance went from $1.1114 billion to $1.3008 billion in May 2013, which represents 3.8% of total credit balances reported in the database", reported Elsiglo.com.
At the end of March domestic credit amounted to $34.338 billion, surpassing by 16% the figure for the same period in 2012.
"The commercial sector claimed the most credit, with a portfolio of $10.2622 billion (22.8%), followed by mortgages, whose portfolio totaled $9.521 billion, up 14.4% from a year earlier" , reported Prensa.com.
"The third most important activity was consumption, with a portfolio of $6.4063 billion, 10.5% more than the previous year."
The growth in the last three years is mainly due to easier credit by local banks and the economic growth that the country has been experiencing.
Data from the Transit and Transportation Authority (ATTT) reveals that in 2010 there were 550,000 cars circulating in Panama, while so far in 2013 the number has increased to 900,000, ie, in just three years over 350 thousand automobiles have been added to Panama's roads.
In March the balance of new bank loans reached $34.339 billion, which is $4.729 billion more than earned in the same period of 2012, when the total was $29.61 billion.
Figures from the Superintendency of Banks in Panama (SBP), reveal that most of the growth in lending balances is in the private sector, with $4.3329 billion, while the public sector only received $396 million.
Analysis has been conducted on the composition of the loan portfolio to buy vehicles, one of the fastest growing sectors in recent years.
In the past five years, auto financing in Panama has been increasing, in February Panamanian banks provided loans of this type worth $813 million.
58.6% of these loans were granted for cars worth up to $15,000. According to a survey on the car market conducted by the Directorate of Financial Studies of the Superintendency of Banks, appropriations for the automotive sector in Panama have increased in proportion to the growth of the economy. However, experts believe that although in 2013 sales will grow, they will do so at a rate lower than in previous years.
The instrument which had been viewed as a way to circumvent the current credit squeeze, is now officially considered as another form of credit facility.
Bankers' acceptances had been relaunched by the National Stock Exchange (BNV) as a way to provide short-term funds to companies who require them, without having to apply for a formal loan, believing that banks would not have to count them as part of their portfolio credit growth which is currently limited by resolution of the Central Bank of Costa Rica (BCCR).
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.