Panama Banks in Regional Top 3

Oct. 29, 2008
Panama City, Panama

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Dear Panama Insider,

Panama banks are a safe place for your money, according to local and international sources. According to banking superintendent Olegario Barrelier, high liquidity is the big reason for this.

Panama's reputation as an offshore banking haven is well deserved; there are some 90 international banks here, making Panama one of Latin America's largest banking centers. Thanks to strict rules that are consistently enforced in Panama, liquidity here is about 58% of deposits. Plus, Barrelier says banks here get by on local deposits and need not rely on other financial markets to stay afloat.

He admits the global crisis will eventually affect Panama, but Barrelier says the likely effect will be a slower economy, not a financial sector crisis.

Word Economic Forum Weighs in Positive on Panama

According to a survey conducted by the World Economic Forum (WEF), this year Panama's banks are among the soundest in Latin America—Panama ranked in the top three, behind only Chile and Brazil, respectively. The results were tallied from detailed surveys of 12,000 corporate executives around the world. The WEF study also lists Panama as the top country in Latin America for "ease of access to loans."

And Panama still has one of the fastest-growing economies in the world. Last year growth topped out at a whopping 11.2%, the highest rate in the Latin American and Caribbean region. Panama is currently the world’s second-fastest-growing economy, after China, and expected growth for 2008 is still an impressive 9.5%.

Jessica Ramesch
Editor, Panama Insider