The report highlights the resilience and strength of Panama’s banking sector towards a complex global environment.
The Superintendency of Banks of Panama (SBP) has published its Financial Stability Report for the second half of 2024—an in-depth analysis assessing the capacity of the International Banking Center (IBC) to withstand both global and domestic risks. The document shows that Panama’s financial system maintained strong growth throughout the year, with IBC net assets reaching USD 156.4 billion, representing a 6.0% year-on-year increase, driven by prudent capital, liquidity, and risk exposure management.
This semiannual report aims to identify potential vulnerabilities and examine macroeconomic factors that could affect financial stability, including sectoral indebtedness, credit conditions, and the ability to adapt to adverse scenarios. Stress tests applied to the loan portfolio indicate that the banking system does not present critical vulnerabilities under hypothetical macroeconomic scenarios, supported by a Capital Adequacy Ratio (CAR) of 15.3%—nearly twice the regulatory minimum of 8.0% and liquidity coverage ratios (LCR) that exceed Basel III standards.
Looking ahead to 2025, the report warns of geopolitical tensions, tighter financial conditions driven by persistent inflationary pressures, and increased volatility in funding costs, which may affect highly leveraged sectors or those dependent on external markets. However, the SBP notes that these risks are considered contained, given the IBC’s safety margins, backed by countercyclical provisions and asset diversification.
The regulatory authority emphasizes that it will continue actively monitoring the financial environment and remain committed to the adoption of international standards, such as the Basel III framework, to mitigate systemic risks.
The report underscores the strength and resilience of Panama’s banking sector amid a challenging global environment and highlights the IBC’s proven capacity to absorb shocks—critical to preserving stability and promoting sustainable economic growth. It also reaffirms the SBP’s commitment to prudent risk management and proactive supervision, which are essential pillars in an increasingly complex global landscape.
For more information on the report’s findings, please visit our website at www.superbancos.gob.pa, under the Financial and Statistical section.
