Below is an explanation of each type of bank license.
As you can see on the List of Banks in Panama there are two (2) State Banks, these banks can be generally viewed as safe and with good ratings.
The State Banks as their name implied are banks owned by the Government of Panama and under the Panamanian Banking Law.
They can perform business only at Panamanian territory.
This license type is the more commonly used among the Banks in Panama, in fact in the List of Banks in Panama publish here at Panama Banks you will find that the 62% of the Banks in Panama are under a General License.
This type of license allows the Bank do business in Panamanian territory as well as abroad, and therefore the more widespread used.
- International License Bank
This license type is the less commonly used among the Banks in Panama, in fact in the List of Banks in Panama publish here at Panama Banks you will find that only 36% of the Banks in Panama are under an International License.
This type of license allows the Bank do business only overseas Panamanian territory.
- Representation Office License
The Representation Office is not an authentic Bank per se; in fact, with this kind of license the Panamanian local authority do not award a Bank License and the right to do business as Bank, the asking Corporation for this license must have a granted License by another banking authority from abroad. In other words, an overseas Licensed Bank can establish a representation office at Panama Banking hub under this kind of license.
This Representation Offices are not listed on this List of Banks in Panama, as we publish all the Representation Office in a separated list.
If you would like to know more about the banking regulation please visit our Banking Law page where we write more about the banking rules.t