Directions: 1.
You must look for information regarding the following points:
a. Mention the types of banks that function in the Panamanian Banking Center. Give
examples of the previous point.
Currently, Panama has many national and international banks of great renown and
experience.
However, the banking system of Panama is made up mainly of private banking, a
good part of it with international capital, during the last two decades of the 20th
century it has been strengthened as one of the most important financial centers in
Latin America, due to legal facilities to settle, the promotion by the State, the
geographical location with respect to the region, its relative economic and political
stability and the dollarization of its economy.
Examples of this banks:
1. Banco General
2. BAC INTERNATIONAL BANK
3. Global Bank
4. Banistmo
5. Banco Nacional de Panamá
6. Multibank
7. Banesco Panamá
8. Scotiabank
9. Banco Aliado
10. Banvivienda
b. Explain what types of banking licenses are held by bank established in the Banking
Center of Panama.
In Panama there are banks with a general license, an international license and a
representation license.
General license: which allows banks to carry out local and foreign operations
International license: that allows only foreign operations, but can participate in the
national interbank market
Representation license: for offices of foreign banks from which they carry out the
promotion of their services and visits to active and potential clients, both in Panama
and in the region.
c. Exemplify what banks operation in Panama have various types of licenses and how
they operate locally and internationally.
Through the investigation I made, I found that the banks in Panama just have one
license, that could be national license, international license and representation
license. For example, some banks that have general license are:
1. Atlas Bank (Panama), S.A.
2. BAC International Bank, Inc.
3. Banco Aliado S.A.
4. Banco Azteca (Panamá), S.A.
5. BANISI, S.A.
Also, banks that have international license are:
1. Atlantic Security Bank
2. Austrobank Overseas (Panamá), S.A.
3. BAC Bank, Inc.
4. Banco Credit Andorra (Panamá) S. A.
5. Banco Davivienda Internacional (Panamá), S.A.
And, finally banks that have representation license are:
1. JP Morgan Chase Bank, National Association
2. Banco General (Overseas), Inc.
3. Lombard Odier & Cie (Bahamas) Ltd.
4. UBS AG
5. Commerzbank Representative Office Panamá, S. A.
2. Make a brief search for information on:
a. The Banking Superintendence the main aspects:
• What law it is create? (date, members).
First of all, by a group of experts in banking matters made up of bankers and
lawyers, a modern legislation conceived under the norms and principles of the
Basel Committee is achieved, an entity that establishes healthy banking policies
and practices in the world. Decree Law 9 of February 26, 1998 introduces a change
in the philosophy of self-regulation that allowed the development of the
International Banking Center during the previous two decades, to adapt the system
to new economic realities. The new legislation established a framework with clear
powers and powers for the regulator.
Because of the law was that it favored the permanence of the members of the
Board of Directors and the Superintendent by terms established by the Law, with
grounds for removal established there in and whose application is the responsibility
of the Supreme Court of Justice. The Board of Directors of the Superintendency of
Banks is made up of distinguished professionals and businessmen without ties to
the banking sector, nor the possibility of being civil servants.
b. How they regulate the functions of local and international bank established in the
Panamanian territory.
If we talk about this, once the previous law was approved, the next task was to adapt
and develop the entire framework established in the legal norm for local and
international banks.
These regulations include: asset classification, asset adequacy, market risk,
corporate governance, external auditors and mergers and acquisitions, on prevention
of the improper use of banking services, and on the appointment, functions and duties
of the compliance officer.
The modernization of the system is important here, since the Superintendency
currently has a state-of-the-art computer structure that allows it to receive detailed
information from the banks through a computerized information transfer system that
is characterized by its high security.
The Superintendency has increased the transparency of the system by providing
periodic and updated information through its website, which allows users and the
national and international community to have financial information both at a
consolidated level and from individual banks; in the same way, it assures account
holders, institutional investors and local and external analysts, the health and financial
condition of our system in an updated and constant way.
Since the end of 2002, the Superintendency of Banks has presented all the financial
statistics of international assets and liabilities to the International Settlement Bank
(BIS) in Basel, which helps to increase the transparency of its operations.
c. The functions and Objectives to the Banking Superintendence.
The Role of the Superintendency of Banks of Panama as Protector of banking
consumer rights.
The Superintendency of Banks of Panama (SBP) is an autonomous institution of the
state whose main objective is to protect the soundness and efficiency of the
Panamanian banking system. A way to achieve this is to safeguard the rights of
potential bank clients and those that are already banking consumers, in order to
promote public trust in the system.
