PANAMA CITY, Nov 27 (PBI) – Panama’s International Banking Center (CBI) has surpassed a historic milestone, with its net credit portfolio reaching $100.09 billion as of October 2025, according to the latest Banking Activity Report released by the Superintendency of Banks of Panama (SBP).

The figures represent a 5.5% year-on-year increase, fueled primarily by a surge in offshore lending. While the domestic portfolio showed a modest growth of 1.63% to reach $63.26 billion, the external portfolio jumped 12.38%, totaling $36.83 billion. This divergence highlights Panama’s consolidating role as a pivotal credit hub for the Latin American region.

Deposits and Funding Resilience

Total deposits, the primary funding engine for the system, rose to $115.29 billion, an increase of $6.43 billion (5.91%) compared to the same period in 2024.

The growth in funding was largely driven by foreign capital. External deposits grew by 10.21%, significantly outpacing the 3.23% growth in domestic deposits. Notably, deposits from private individuals abroad saw a sharp rise of 13.25%, with demand accounts (+29.66%) and savings accounts (+19.50%) leading the influx. Analysts suggest this reflects a flight to quality and stability within the Panamanian jurisdiction amidst regional volatility.

Sectoral Performance and New Placements

New loan originations for the National Banking System (SBN) reached $22.2 billion through October, a 5.2% increase over the previous year.

The Commerce sector remains the backbone of new credit, accounting for $10.53 billion of disbursements—a 16.6% increase from 2024. Other sectors showing growth included:

• Personal Consumption: $2.62 billion (+3.2%)
• Livestock/Cattle: $469 million (+3.3%)
• Mining and Quarrying: Though originating from a low base, this sector saw a dramatic spike from 5millionto∗∗5 million to **5millionto∗∗ 119 million**.

Balance Sheet Strength and Regulatory Buffers

Total net assets of the CBI reached $160.38 billion, up 4.44% year-on-year. The SBP characterized this growth as a deliberate strategy by banks to optimize balance sheets and expand productive assets in an environment of “more demanding international financial conditions.”

Despite the expansion, the system maintains a formidable capital cushion. The Liquidity Coverage Ratio (LCR) stood at 53.4%, and the Capital Adequacy Ratio (IAC) reached 16.3%—nearly double the regulatory minimums.

“The results confirm that the International Banking Center maintains solid fundamentals in terms of liquidity, capital, and profitability,” the SBP stated in its report. However, the regulator cautioned that moving forward, banks must prioritize operational efficiency and rigorous monitoring of asset quality to preserve structural resilience against potential global macro-strains.

As Panama enters the final quarter of the year, the banking sector appears well-positioned to act as a buffer for the local economy while aggressively capturing market share in the regional credit landscape.