by Max Barry

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The Federal Republic of

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The Banking System (PCBS)

Panama Coalition Banking System (PCBS)

The Balboa is Panama Coalition’s currency. Chromia Credit is also used as an official currency for trade with The North Pacific Banking Clan.The Nation have the Panama Central Bank (Banco Central de Panama) and the Banco Americano de Panama, is a self-regulated dual system of Central Banking. The National Bank of Panama has certain functions of a central bank, such as serving as the clearinghouse for the banking system.

Banco Central de Panama

Banco Americano de Panama

Panama International Banking Center (IBC)

The Panama International Banking Center (IBC) with its over 295 banks registered total assets of NS$ 507.053 billion at the end of 2017, 9.1% more compared to 2016. The majority of the banks operate with international capital.

The IBC has maintained absolute stability. Several local banks have issued medium term financial instruments in the international markets. International firms and analysts have qualified the Panamanian IBC as a “safe haven”. This stability has prevented periods of “credit crunch” in Panama and credit always has been available even during the financial crises that have affected other countries in the region.

The Banking Superintendency (Superintendencia de Bancos) is the banking sector ombudsman. Among its main duties are:

- Watching for the stability of the banking system; supervising banks and those economic groups of which they are a part;

- Granting and canceling banking licenses; order corrective measures concerning banks (appointment of advisors, interventions, reorganizations, compulsory liquidations, imposition of fines, etc.);

- As well as authorizing bank mergers.

The law establishes fixed terms for the members of the Board of Directors and the Superintendent, with specific causes for their removal and legal determination for dismissal resting with the Supreme Court of Justice.

Panama opened its banking sector to foreign competition in 1970 under legislation, which placed high priority on banker-depositor confidentiality. The banking legislation establishes three classes of operations:

1. General license banks operate full service banks in Panama and compete for domestic and foreign deposits and loans;

2. International license or "offshore" banks, can only accept deposits from persons or organizations located overseas;

3. Representative offices can only perform representational activities.

There are also two state-owned deposit-taking institutions. Foreign and Panamanian banks compete on equal terms. Banks are organized into the Panamanian Banking Association (Panamanian and Foreign Banks) and are licensed and regulated by the Banking Supervisory Authority (Superintendencia de Bancos). Panama’s banking system does not have a deposit insurance scheme.

The Panamanian banking system is solid and secure with some good financial indicator like: 60.9% of liquidity. In particular, loan portfolios grew by 7.2 per cent and the securities market increased by 6.3 per cent.

Bank Licenses

There are three types of banking license:

1. General: which allows banks to carry out local and foreign operations and

2. International: which only allows foreign operations, but they can also participate in the national inter-banking market.

3. The representation license for foreign bank offices: from which they can carry out the promotion of their services and visit current and potential clients in Panama Coalition and the region.

Latest figures reveal that domestic credit increased 10.4%, which is consistent with the growth of the Panamanian economy, for which a positive performance of 8.5% is expected in 2015. The credit was driven by portfolios of mortgage loans (13.5 % more), consumer (13.5%) and interim construction financing (23.9 %).

The IBC has the capacity to attend investors’ needs and provide services for those interested in new areas and investment opportunities such as purchasing real estate, tourism, port and industrial activities, technology, call and data centers.

The Stock Exchange

Bolsa de Valores de Panama, S.A. (the “Panama Stock Exchange” or “PSE”) began operations in 1990. It was created as an answer to the pressing need for alternative financing opportunities. The aim was to have a centralized trading system where securities supply and demand could operate freely. The PSE also promoted measures to modernize the local securities market and established a central securities depository called Central Latinoameri-cana de Valores, S.A. (“Latin Clear”). The two entities have a common holding company, Latinex Holdings Inc., which trades in the securities market, but are maintained as companies with separate operations and administrations.

The Panama Diamond Exchange

The Panama Diamond Exchange (P.D.E.) was established to serve as a trading headquarters for the diamond, gemstone and jewelry sectors of Latin America and the Caribbean, and to operate as gateway to the region for suppliers and buyers from around the world. It also is the first and only diamond and gemstone exchange in all of Latin America to be recognized by the World Federation of Diamond Bourses.

Will also have the World Jewelry Hub’s Free Trade Zone serving as the primary trading hub for South and Central America, Mexico and the Caribbean, and be the key access point to the region for buyers and suppliers from around the world.

The exchange will eliminate the use of intermediaries, therefor reducing the Latin America gem prices by 20% to 25%, making them more attractive to the international market. The Panama Diamond Exchange began operations in March 2015.


Panama offers investors different options and advantages to establish insurance businesses. Currently the nation is preparing itself to make a major shift in its economy and it is structuring its platform to strengthen its tourism development.

The insurance sector is being offered excellent benefits and advantages, especially for the captive insurance companies (those established by a parent group or groups).
Any insurance captive company that opens operations under the present legislation will not pay taxes on insurance premiums or profits resulting from its activities.

Superintendencia de Seguros