News

A recent article in The Banker magazine highlighted Panama as the “ideal investment destination,” focusing on the country’s stability, dollarized economy, and security.

Emerging from the pandemic, Panama’s bank sector remains strong, Javier Carrizo, general manager at Banco Nacional de Panamá, and Otto Wolfschoon, president of the Banking Association, told the publication during a recent event promoting Panama in the U.K.

One notable item leaped out of the conversation: “Panama has been fortunate because it has never been subject to a credit crunch,” Wolfschoon said. “There is always financing for good projects and good initiatives.” 

That is an amazing statement and absolutely true. Throughout the major global economic crisis of recent generations, Panama emerged as strong as ever, without the economy grinding to a halt, as it did in other countries. Now we’re seeing it again in the wake of COVID: Panama has rebounded much quicker than other economies, with funding still in place for major projects.

During the 2008 crisis, Canada, Chile, and Panama were considered the best places to deposit funds and capital, Carrizo told The Banker. “Deposits within the banking sector keep growing,” he said.

In the past year, bank margins have “have remained pretty stable,” Wolfschoon said. “When you compare them with the pre-pandemic period, banks have concentrated more into increasing efficiency, also through digitization initiatives,” he said.

The banking system is increasingly in compliance with international regulations and should be removed from the “grey list” in the next year, the officials said. The sector has increased requirements to incorporate a company in recent years, Wolfschoon said. “For the banks, it is not a big issue,” he said. “Our clients are either in full compliance or close to full compliance.”.