Supervisory Framework

The Superintendency of Banks of Panama (the "SBP" hereafter) is the regulator and supervisor of the banks and banking groups authorized to operate in Panamá, as well as the supervisor of the trust entities to which the SBP has granted a license.

The principal objective of the SBP is to ensure the soundness and efficiency of the banking system. To achieve this goal, the SBP performs the bank examinations required by the Banking Law and the Board of Directors of the SBP, and those it considers necessary or prudent.

With this objective in mind, the SBP maintains a framework of macroprudential and microprudencial supervision.

The macroprudential supervision has the objective of preventing and mitigating the systemic risks that can threaten financial stability, thereby guaranteeing the soundness of the entire financial system.

The macroprudential supervision of the Panamanian banking system is conducted at the highest level within the SBP, using the input provided by the Division of Financial Studies and the Division of Risk Management and the assistance of the Division of Regulation in drafting the rules necessary to strengthen the regulations of the banking system and increase its resilience.

At the same time, the microprudential supervision focuses on the soundness of each banking institution. The Division of Supervision leads the planning and execution of the on-site and off-site examinations of the different banks and banking groups, with the support of the Specialized Divisions of Risk Management and Prevention and Control of Illicit Operations.

The microprudential supervision uses a risk-based supervision approach which is summarized in the enclosed Spanish-language publication.

Guides for microprudential supervision and operation of the Uniform Risk-based Supervision Manual (MUSBER)