Panama CBI: Strong 2024 Signals Banking Sector Resilience

Panama’s International Banking Center (CBI) Demonstrates Remarkable Strength in 2024

Panama City – Panama’s International Banking Center (CBI) demonstrated remarkable financial strength in 2024, underscoring its critical role in the nation’s economic stability. The CBI’s performance, characterized by substantial growth in assets and strategic portfolio expansion, highlights its resilience and adaptability in a dynamic global environment.

Assets and Profits Surge

The CBI’s total assets grew to USD 156,392.8 million, marking a 6% increase, while profits rose by 8.2%. This growth is a testament to the CBI’s effective navigation of global financial challenges and its pivotal role in Panama’s economic resurgence.

Strategic Credit Portfolio Expansion

A key driver of the CBI’s success was the expansion of its net credit portfolio, which grew by 9.1% to USD 95,186.7 million. This increase reflects heightened lending activity across various sectors, boosting both domestic and international engagement. Investments in securities also saw a 7.0% rise, indicating a strategic diversification of assets.

External Credit Portfolio Growth

The CBI’s external credit portfolio experienced significant growth, expanding by 17.1%. This expansion underscores the CBI’s increasing integration with global markets and its effectiveness in channeling international capital flows.

Domestic Lending Boosts Local Economy

Domestically, the CBI’s credit portfolio grew by 4.9%, with notable increases in the commerce and industry sectors (8%) and household banking, including mortgages (3.5%). New credit disbursements increased by 11%, reaching USD 25,220 million, surpassing pre-2019 levels and solidifying the recovery of credit activity.

Regulatory Compliance and Financial Soundness

The CBI maintains high standards of regulatory compliance, with an average liquidity ratio of 54.29% and a Capital Adequacy Ratio of 15.29%. These figures significantly exceed regulatory minimums, providing a substantial buffer to absorb financial shocks and mitigate risks.

SBP Focus: Robust Regulation and Modernization

The Superintendency of Banks of Panama (SBP) is committed to strengthening regulation, improving operational efficiency, and reinforcing cybersecurity. Superintendent Milton Ayón Wong highlighted the importance of these efforts, noting that “the growth of the domestic portfolio and the increase in new credit disbursements are a clear reflection of the strength and resilience of our banking system.”

Future Regulatory Roadmap

Looking ahead, the SBP is focused on enhancing supervision and modernizing payment systems. A key priority is the enactment of a modern payment systems law aligned with international standards, as recommended by the Financial Sector Assessment Program (FSAP) of the IMF and World Bank.

Looking Ahead

The robust financial performance of Panama’s CBI in 2024 reflects its critical role in the Panamanian economy. With a focus on regulatory compliance, financial soundness, and strategic growth initiatives, the CBI is well-positioned to continue driving economic development and maintaining its competitive edge in the global financial landscape.

Follow PanamaBanks.info for more Panama Banks information!