The Superintendency of Banks of Panama (SBP) has implemented the Supervisory Assessment Methodology for International Banks (MESBI), a new tool designed to strengthen prudential supervision of branches of foreign banks holding a general license, as well as general-license branches and international-license subsidiaries and branches subject to host-country supervision.
MESBI incorporates a risk-based supervisory approach, with assessment criteria tailored to the characteristics and risk profiles of these institutions. This methodology will enable the SBP to conduct more objective and consistent supervisory processes aligned with international standards.
The methodology assesses key areas including governance, prudential risk management, financial condition and performance, compliance with applicable regulations, host-country supervision, and measures for the prevention of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
As part of this new framework, the SBP is introducing, for the first time, a supervisory rating for general-license branches and international-license subsidiaries and branches subject to host-country supervision. This tool complements the existing assessment framework, which is applied through the GRENP methodology to institutions for which the Superintendency acts as the home-country supervisor.
The implementation of MESBI will be carried out gradually, beginning with a pilot phase that will allow the SBP to validate the methodology and make any necessary adjustments before its formal application.
Through this initiative, the Superintendency of Banks of Panama continues to strengthen its supervisory framework to respond to the evolving financial environment and promote risk-based supervision aligned with international best practices. At the same time, the initiative contributes to strengthening the stability of Panama’s banking system and confidence in the International Banking Center of Panama.
