Since its inception in 1970 with the creation of the banking law, Panama’s banking and financial sector has grown and molded itself to the characteristics of the economy, making adjustments but surviving after each crisis experienced at regional and global levels.
Throughout the years, the industry has found a way to adapt itself to the prevailing worldwide conditions, and has undergone changes as the market has grown and demand for banking products has increased.
Currently the number of banks operating in the country amounts to 91, of which 47 have a general license, 29 are licensed internationally and 14 are representative offices.
An article in Prensa.com reports: "What happened, according to the manager of the risk rating agency Equilibrium, Raul Castrellón, is that banks have shown their ability to make strategic financial adjustments to any threat to their stability.
"The market has managed to avoid the crisis very well, based on a strategy of adjustments, however not all banks have been able to do the same," the analyst said while stressing that the composition of the internal loan portfolios has undergone significant changes. "
Source: Prensa.com
More on this topic
March 2012
With average Return on Assets (ROA) of 2.30% and 20.28% on Equity (ROE) in 2011, there has been growth of 63% compared to profits in 2010.
Net earnings for January 2012 were $147 million, an increase of 62.9% compared to the same period in 2011, according to data from the Superintendency of Banks.
July 2011
In an attempt to attract more customers banks are diversifying their product portfolios.
One example is the Agromercantil Bank (Bam) who will soon launch a product called 'Hazlo sencillo' (Make it Simple), which will be accessible to the institution's debit card users. "The service will consist of rounding off cardholder's accounts and transferring the balance to a small savings account, where the owner will earn interest on those savings.", said the general manager of the institution, Luis Fernando Caceres, in an article in Siglo21.com.gt
September 2011
Companies are choose to seek financing in foreign banks, because they offer lower rates.
The Bank of Guatemala (Banguat) has revealed that domestic banks have lost their appeal compared to credit lines offered by foreign banks.
There seems to be a greater interest by Guatemalan companies in negotiating foreign loans, according to Banguat’s figures regarding transfers abroad for paying interest and capital repayments.
August 2008
The high yield on financial income is due to the sustained increase of 26.7% in the loan portfolio.
As of May 2008, the consolidated assets of the International Banking Center (CBI) totaled 73.7 billion Balboas, an increase of 35.5%; while on a bank-only basis, the assets continue to show a growing trend with a balance of 61.2 billion Balboas, representing an increase of 28.6%
español
1895
