Superintendency of Banks of Panama implements risk-based supervisory methodology for internationally licensed banks

The Superintendency of Banks of Panama has implemented the Supervisory Assessment Methodology for International Banks, a risk-based framework for foreign bank branches with general licenses and general- and international-license entities under host supervision. The methodology introduces assessment criteria tailored to these entities’ characteristics and risk profiles. Assessments will cover governance, prudential risk management, financial condition, regulatory compliance, host supervision and controls against money laundering, terrorist financing and proliferation financing. For the first time, host-supervised general-license branches and international-license subsidiaries and branches will receive a supervisory rating. The framework complements the existing GRENP methodology for entities where the authority acts as home supervisor. Implementation will be gradual, beginning with a pilot phase to validate the methodology and make adjustments before formal application.