Superintendency of Banks of Panama reports National Banking System remains solid as credit and deposits expand through May 2025

The Superintendency of Banks of Panama published its latest Banking Activity Report, indicating the National Banking System (SBN) remained in a solid financial position at end-May 2025, supported by risk management, prudential solvency and liquidity levels, and a reasonably positive operating performance despite a challenging international environment. It cautioned that second-quarter operational disruptions, especially in regions affected by protests, could have lagged impacts. The International Banking Center (CBI) credit portfolio totalled USD 98,506 million, up 9.5% year on year, while the local gross loan book reached USD 64,652.4 million, up 4.5% (USD 2,793.2 million), with growth concentrated in agriculture, trade and personal consumption and contractions in fishing, construction and livestock. Deposits increased to USD 112,720 million in the CBI (up 6.3%, or USD 6,685 million) and USD 98,495 million in the SBN (up 5.2%, or USD 4,828 million), driven mainly by non-resident private deposits; combined net assets of the CBI and SBN rose by more than 6% to USD 156,776.0 million. The report also flagged robust buffers, including a legal liquidity ratio of 56.9%, a liquidity coverage ratio above the regulatory threshold and a capital adequacy index of 15.71%, while pointing to the need for ongoing focus on operational efficiency, income diversification and asset quality.