- Banks have until December 31 to transition modified loans into the portfolio subject to normal collection treatment.
The modified loans portfolio decreased to 2.7% as of November 2022, representing a significant reduction from the 47.6% recorded in July 2020, as revealed in the final Banking Activity Report (IAB) of the year issued by the Superintendency of Banks of Panama (SBP).
This percentage indicates that pressures on asset quality are under control, highlights the SBP’s report.
The report notes that the modified portfolio, as of November 2022, amounted to USD 1.61 billion, marking the largest decrease compared to October 2022, with a month-to-month decline of 38.8% (USD 1.017 billion).
As the report explains, the higher-risk components of this portfolio, specifically the modified doubtful and modified loss categories, totaled USD 441 million.
It should be noted that, in compliance with the latest regulations, banks have until December 31, 2022, to transition modified loans into the portfolio subject to normal collection treatment (Rule 4-2013).
On the other hand, the report reveals that, as of November 2022, the gross domestic credit portfolio of the National Banking System (SBN) experienced growth, reaching a total of USD 58.93 billion, with a 12-month increase of 6.4% (USD 3.54 billion), driven by increased demand for credit.
As of November 2022, the deposits of the International Banking Center (CBI) totaled USD 98.85 billion, marking an increase of USD 1.72 billion (1.8%). Additionally, foreign deposits recorded growth, reaching USD 36.12 billion with an increase of USD 1.84 billion. The report highlights that foreign deposits have maintained performance in line with financial system deposits, reflecting public trust in the CBI, according to the SBP. Most foreign deposits originate from Colombia and Peru, followed by Venezuela, the Dominican Republic, Costa Rica, and Ecuador.
For more detailed information on the results of this report, please visit our website at www.superbancos.gob.pa (Statistics).
