- Depositors are confident of the banking system.
- The modified [loan] portfolio shrunk by 59% or USD 13.69 billion.
In a context of the positive growth of the Panamanian economy of 15.3% during 2021, the International Banking Center (IBC) positioned itself as a key element in the Panamanian economic reactivation process, proof of this is the increase in new loans amounting to USD 16.85 billion, as of the end of December 2021.
This increase, which represents 14% more than that of December 2020, is a sign that the economic recovery has already begun to have a positive impact on most productive sectors, mainly activities such as the agricultural sector, mortgages, consumer, and commerce. However, the presence of several risks and a strong uncertainty, increased by the war in Ukraine, makes prudent optimism necessary, said Amauri A. Castillo, Superintendent of Banks.
These figures were announced during the presentation of the 2021 performance of the IBC, with the theme “Evolution of the Banking System and its role in economic recovery,” in a hybrid event that brought together, physically and virtually, the main actors of the national and international financial sector.
Another positive indicator was the result showed in the volume of customer deposits, which increased USD 3.33 billion or 7.4%, which denotes the depositor’s confidence in the National Banking System. In this segment, corporations have the largest share with 60% of customer domestic deposits and a growth rate of 6.5%, while the remaining 40% is represented by savings from individuals, which grew 3.8% compared to the same period of 2020.
Likewise, the Superintendent of Banks explained that, although the level of individuals’ savings is positive, a foreseeable decrease is observed, which could be related to the reopening of activities affected by the pandemic, the level of precautionary savings, and the resuming of payment of commitments acquired through the financial relief plan.
Regarding the figures of the modified [loan] portfolio, the regulator informed that, after one year, this segment has shrunk by 59%, that is USD 13.69 billion. As of December 2021, the total modified [loan] portfolio reached USD 9.26 billion.
It was reported that, as of the second half of 2021, significant movements were made from this segment to the unmodified [loan] portfolio, after fulfilling the commitments agreed between clients and their banks.
The sectors with the highest level of transfer to the regular [loan] portfolio correspond to the mortgage sector, which decreased its modified [loan] portfolio by USD 4.18 billion or 78%, followed by personal consumption with a decrease of 58%.
IBC assets reached a total of USD 13.36 billion, which represents an increase of 2.3% versus December 2020. Likewise, the financial soundness indicators remain close to twice that required by law and prudential regulation.
The participation of the Superintendent of Banks included a summary of the regulatory body’s most outstanding achievements, among which the digital transformation stands out with the strengthening of processes and investment in technological infrastructure, thus raising efficiency levels and strengthening staff knowledge.
Likewise, he highlighted the advances in prudential supervision, banking access in the country, the National Strategy for Financial Education, as well as improvements in anti-money laundering and terrorism financing.
“Aware that electronic transactions and digital means of payment have maximized the use of e-commerce, it is a top priority for the Superintendency to continue the structuring of the bill on the National Payment System of Panama, which will allow us to update and promote the transformation both at a legal, regulatory level, as well as in terms of administration and supervision for the proper control and surveillance of these payment systems in the country,” pointed out the Superintendent of Banks.
For further information on the results of this report, please visit our website www.superbancos.gob.pa / Financial & Statistical node.
