Panama Banking Credit Trends Report

The Banking Activity Report (IAB) from the Superintendence of Banks of Panama (SBP) revealed that as of October 2023, the net loan portfolio of the International Banking Center (CBI) experienced a 4.3% increase, reaching a total of US$87,096 million. This balance reflects an increase of US$3,602 million compared to the same period the previous year when the figure was US$83,494 million.

The SBP attributes this result to the positive performance of the external component of the net loan portfolio, indicating that despite adjustments in interest rates, the banking sector continues to expand credit issuance. The Superintendence highlights heterogeneity in this growth, emphasizing significant differences between the local and external components of the loan portfolio.

Regarding new loans, disbursements amounted to US$1,979.3 million, reflecting a decrease of 4.9% compared to the same period the previous year. The SBP suggests that events at the end of October could have significantly influenced this performance, affecting the placement of new loans due to mobility restrictions.

In this context, the SBP anticipates that financial institutions will intensify their focus on managing and monitoring credit risks to preserve the quality of their loan portfolios. Additionally, CBI bank deposits totaled US$101,451 million, showing an increase of 4.7% or US$4,534 million compared to the previous year.

In terms of total assets, the CBI experienced a 3.7% increase, reaching US$142,551 million, with an increase of US$5,129 million compared to October 2022. This growth is primarily attributed to the expansion of the loan portfolio and the investment component.