According to the Banking Activity Report (IAB) issued by the Superintendency of Banks of Panama, the assets of the International Banking Center (CBI) exhibited an accelerated expansion rate, thanks to the improved performance of the net credit portfolio as of January 2023.
The results of CBI’s net credit portfolio showed a growth of 12.1% as of January 2023, reaching a total of USD 83.37 billion. This represents a substantial year-on-year difference of USD 9.03 billion compared to January 2022.
In terms of funding sources for the banking system, deposits constitute a significant portion of CBI’s funding. They support its credit operations and reduce reliance on wholesale funding through market debt issuance, which is typically more volatile.
It is important to highlight that banks employ a financing strategy that relies on term deposits and demand deposits (savings and checking accounts), followed by bond issuances to support their activities. As of January 2023, deposits at CBI have reached USD 98.38 billion.
During the surveyed period, the latest Capital Adequacy Ratio (CAR) showed that CBI’s aggregate solvency indicators maintained a robust position. The CAR on risk-weighted assets (RWA) stood at 15.34%, surpassing the regulatory minimum of 8%. This indicates that the solvency ratio is well above the required regulatory level of 8%, including the countercyclical or dynamic provision.
It is worth noting that, during the first month of 2023, CBI demonstrated resilience, recovering from two years of pandemic-related challenges in a context of uncertainty and heightened external complexity resulting from stringent financial conditions, characterized by a global increase in interest rates.
For additional information on the results of this report, please visit our website at www.superbancos.gob.pa (Statistics).
