The consolidated assets of the International Banking Center (IBC), at the close of 2008 reached a quantity of B/76,250 million, thus was let known by the Superintendent of Banks of Panama (SBP) during the presentation, “Banking System of Panama – Performance in 2008 and Challenges of a New Economic Juncture”.

The operations of the Banking Center have been developed in a positive local economic enviroment and an adverse international context and the lessor growth of the local economy and especially of exports and direct foreign investment, will continue to hang over banking operations in 2009.
The Program of Financial Stimulus (PFS) by the way was clarified as to its character being a substitution for sources of funds, whose purpose is to prevent banking credit from constituting an addictional factor for a lessor increase of the economy.
Overall, the fundamentals of the Banking System are stable with good liquidityat 62%, a solid adequate capital at 14% and a satisfactory quality of assets.
According to the analysisof SBP, the internal credit of the private sector grew at 14.4%, the same as the growth of individual internal deposits (14.9%).  Equally, operations had a significant growth of profits (18%) with an operating efficiency of 47.3% (GG/IO) while indicators of the quality of credit, and especially the consumption portfolio, present an inflection that requires more monitoring.
The regulatory institution sustains that the management of risk of liquidity must be maintained as a priority.  Beside that, the unstable foreign financial context suggest the need to be prepared for diverse sources of financing.
It was indicated that the PFS constitutes an alternative for diversifying the credit offering.  The fundamental was that the offering of banking credit should not be an additional element that reduces the rhythm of economic activity.
The SBP indicated that there is a priority to strengthen capitalization of the system.  While the level of profits offers a solid space to make assets more robust.
Likewise, it informed that regulation framework and supervision will continue adjusting itself to assure stability for the System, with special emphais on liquidity, adequate capital, classifcation of assets and risk mitigation.
According to projections of the regulating institution the variants in the scheme of consolidated supervision will make perfect the supervision based on the evaluation of risk management.
The presentation had the participation of members of the economic cabinet, representatives of the diplmatic corps, sector regulators, risk qualifiers and high executives of the banking institutions, local and international media and special guests.
For more information visit the website of the Superintendent of Banks: www.superbankcos.gob.pa.