The banking system system of Panama is mainly made up of private banks, much of it with international capital. During the last two decades of the 20th century, Panama's banking system has strengthened as one of the most important financial centers in Latin America. This is due to the legal facilities for establishing banks in Panama, support provided by the Government of Panama, its geographical location, its relative economic and political stability and the dollarization of its economy.
The first attempts to create a banking institution in Panama date back to the time when the country was part of Gran Colombia; in 1826 the "Revenga Project" was created, which attempted to establish a national bank for Gran Colombia that would have its headquarters in Bogotá and three other branches located in Caracas, Guayaquil and Panama City; however, the project was never completed and the idea was discarded.
The first bank established in Panama dates back to 1861 and was known as the Banco de Circulación y Descuentos Pérez y Planas, which was in charge of circulating paper money that was printed by the American Bank Note Company. The Banco de Pérez y Planas cancelled its patent in 1867 and in 1869 a new bank called Banco de Panamá was established. In 1866 the Exchange Bank of Colon appeared, also in charge of issuing banknotes, but it quickly disappeared due to breach of contract in 1873. In 1865 and 1867 two banks were created, first the public Banco del Estado Soberano de Panamá, which in 1880 would become the issuer and the other the Banco de Ehrman, in charge of the purchase of foreign currency, which continued to operate after the separation of Panama from Colombia. In 1885 the Saving Bank was created based in Colón, but a fire destroyed the bank and it disappeared.
In 1903, the first two modern Panamanian banking institutions were created: the International Bank Corporation, which would later be called First National City Bank of New York, now Citibank, and the Banco Hipotecario y Prendario, which was enacted by law by Panamanian PresidentManuel Amador Guerrero on June 13 of that year and began operations shortly thereafter on October 12. The latter changed its name to the current Banco Nacional de Panamá, which initially financed the agricultural and livestock activity of that country. The Government of Panama also created Caja de Ahorros in 1934, an institution that was initially a mortgage institution that later expanded its services. Other notable banking institutions were Banque National de Paris, now BNP Paribas, the first bank with European capital established in Panama, and Banco General, founded in 1955, being the first Panamanian bank with private capital.
On July 8, 1941, Law 101 was passed, regulating banking activity in Panama, leaving the Ministerio de Hacienda y Tesoro (Ministry of Finance and Treasury) in charge of controlling the banking system and the Contraloría General de la República (Comptroller General of the Republic) in charge of supervising it. Despite this, activity grew rapidly and without major controls, so the government had to adopt legal measures to avoid financial problems. Thus, Cabinet Decree No. 238 was approved on July 2, 1970, establishing the first Banking Law in that country, which created the Comisión Bancaria Nacional (National Banking Commission) as an entity promoting banking activity in Panama.
The Cabinet Decree No. 238 allowed the development of the International Banking Center in Panama City, promoting the arrival of capital from several banks oriented mainly towards financing in Latin America. Since then, Panama has become one of the main financial centers in the region.
It was not until February 26, 1998 that a regulatory body for banking activity was established in Panama, when the Superintendencia de Bancos de Panamá (Superintendency of Banks of Panama) was created.
List of banks in Panama
The following list shows the banks that are registered with the Superintendencia de Bancos de Panamá (Superintendency of Banks of Panama) as of September 2024.[1] Banks operating in Panama are classified into three types: those with a general license, which allows them to conduct both domestic and international operations; those with an international license, which allows them to operate only outside of Panama; and representative offices, which serve as liaison offices without conducting banking activities within the country. An official bank is a bank owned by the Government of Panama.
The following list provides banks that have ceased operations in Panama. These closures may have occurred for a variety of reasons, including mergers, acquisitions, financial insolvency, or regulatory measures.
Acquired by BCT Bank International, following the bank's reorganization after facing sanctions from U.S. authorities for alleged links to a money laundering network based in Panama.[3]
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