Banking

The US Dollar is the official currency, virtually eliminating any currency exchange risks to foreign companies operating here. The country has maintained the lowest inflation rate of the region the last 40 years, only 4.2% in 2007.

Panama's economy has become one of the healthiest in Latin America with a Real GDP increase of 11.2 % in 2007.

Panamanian Currency: Balboa (B/.) Exchange Rate US$1.00 = B/.1.00 (fixed exchange since 1903) An International Banking Centre, the most modern and successful in Latin America, offers investors 86 Banks with total assets of US$68,.7 M (2007), which happens to be the largest in Latin America. The Banking Center is composed of more than 25 countries around the world. Banks from Asia, Europe and the Americas carry out their operations to and from Panama, not only as a consequence of the favourable environment established by the Banking Law, but also due to a series of comparative advantages facilitating banking activity.

 

Panama's economic stability is largely due to it's economy being tied directly to the United States dollar:

Investor confidence is based on a unique economic and free-trade platform. Unlike any other Latin nation, service industries account for approximately 80% of Panama's GNP and Panama has the exclusive right to use the US dollar as its parvalue currency. This combination produced an strong economy that grew 11.2% in 2007. Foreign and national businesses reap the benefits of free trade agreements with Singapure, Taiwan and Chile.

The panamanian financial industry is regulated by The Superintendency of Banks of Panama.

The Superintendency of Banks of Panama has worked since June 2004 ito develop the bases of the ultimate implementation in Panama of the Basel II standards.

LOCAL BANKING SYSTEM AND SOURCES OF FINANCE FOR COMMERCE AND INDUSTRY

The Panamanian Banking Law of 1998 was reformed on Febrary 2008. The main chages approved were:

1. To expand the powers of review and supervision granted to Superintendecy of Bank of Panama (SBP),

2. To tighten regulations for banks with international licenses.

3. To simplify the process of forced liquidations of banks and the institution of arbitration banking services, as a method of alternative conflict resolution between banks and their customers.

The Panamanian Banking System is recognized internationally for its efficiency, robustness and good performance. In order to maintain this good standing, following the demands of the Basel Agreement and due to the changing times we have adopted these modifications to our banking systems.

The Superintendency of Banks of the Republic of Panama
Unlawful banking business

The Superintendency of Banks of the Republic of Panama advises that the persons and/or companies included in the following list do not hold a banking license to engage the banking business within and from Panama.

The companies and persons are only entitled to engage in the banking business within and from the Republic of Panama, if the Superintendency of Banks of the Republic of Panama has granted a banking license, prior to beginning operations. Furthermore, the companies and persons that engage in the banking business without the respective license, are subject of the sanctions established in article 25 of the Decree Law No. 9 of 1998.