Analysis of the current state of the Panamanian capital market, including the confidence threatened by various financial setbacks, and the opportunities to make the much needed structural changes.
Martesfinanciero.com reviews three episodes which have shocked the Panamanian financial market in recent weeks: "These events have shaken the financial system and put market players on alert.
The Banking Superintendence rendered void the 2008 Agreement 2, enacted July 3, 2008.
This temporary regulation established "general parameters and guides for valuating market or credit risk insurance guarantees", explained journalist Edith Castillo Duarte in Prensa.com.
Amauri Castillo, general secretary of the Superintendence, remarked that such regulation was issued in light of the particular situation faced by the financial markets one year ago. The situation has changed, and the outlook is more favorable now.
Alberto Diamond has replaced Olegario Barrelier as Banking Superintendent in Panama.
Diamond will serve the entire period for which Barrelier was originally named, until June 13, 2013.
Diamond worked as President at KPMG Central America, and Partner Director at KPMG Panama. He has been in the audit and advising industry for over 42 years, coordinating important projects, specially in the financial sector.
BNP Paribas, who recently announced its exit from Panama, is one more big bank joining the exodus of important financial entities leaving the country.
Chase Manhattan Bank was the first big bank to leave the country, in 2000. It was followed by The Bank of Tokyo Mitsubishi, Banque Sudameris, BankBoston, UBS, ABN Amro Bank, Societé Génerale and now BNP Paribas.
Profitability drops as asset liquidity increases, but liquidity is what ensures the life of the banking business and their customers' money.
Panamanian banks have not used the extra funds that the financial incentive program (PEF) made available to them in order to stimulate lending. In addition, it must be considered that said funds are very expensive, and they have simply not been needed.
The Panamanian Bank Superintendent, Olegario Barrelier, clarified that no Panamanian bank is having cash problems.
La Estrella published on its website: "Although the figures show that the Panamanian Banking System remains sound, it has been affected by rumors of liquidity problems at some institutions in recent days. As a result, some customers have withdrawn their savings from financial institutions, leading to the Panamanian Bank Superintendent (SBP) to reiterate that the fears are unfounded and that banks with a general license have liquidity margins beyond legal requirements. "
Panama's International Banking Center recorded $76.250 million in assets by the end of 2008.
DialogoCiudadano.com publishes: "Olegario Barrelier, Banking Superintendent, spoke about the subject in his presentation 'Panama's Banking System: 2008 Performance and Challenges facing a New Economic Situation', to industry delegates and members of the press.
The Superintendence of Banks in Panama is analyzing the feasibility of creating an insurance for deposit in order to protect savers.
Superintendent, Olegario Barrelier, acknowledged that up to now they had not considered this instrument because it is very expensive, however, he said that they are analyzing how it can be applied. "This depends on how we manage it, we are analyzing it again," the official said, but did not give any more details.
Banks in Panama have enough liquidity and are properly positioned to face the international credit crisis, the head of supervising the sector said on Monday.
Olegario Barrelier, superintendent of Banks in Panama, said that liquidity in the banking sector in the country was close to 58% of deposits, with a manageable level of exposure to international markets that have been shaken by the US financial crisis.
Panama's banking regulator is preparing the ground for application of new rules established by the Basel II agreement.
As part of the initial stage of the process, banks will have to contract specialized ratings and risk analysis companies in accordance with the agreement. They have until the end of June to make the appropriate arrangements, banking superintendent Olegario Barrelier reminded them in a circular issued this week.
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