The Superintendency of Banks of Panama published its Banking Activity Report as of end-July 2025, showing that the International Banking Center (CBI) continued to expand, with net lending identified as the main driver of asset growth. The update also reports deposits remained the dominant funding source and that liquidity and capital indicators stayed well above regulatory minimums, while flagging pressures from higher funding costs and increasing reliance on external funding. Net loan portfolio reached USD 99,476.2m, up 8.01% year on year (USD 7,381.1m), led by the external segment which rose USD 5,514.1m (17.49%), while the domestic portfolio increased USD 1,746.7m (2.78%). Deposits totalled USD 113,126.1m, up 7.5% (USD 7,871.5m), with domestic deposits up USD 2,794.4m and external deposits up USD 5,077.1m. Net CBI assets grew 6.7% year on year to USD 157,807.8m (USD 9,956.4m), with the average Legal Liquidity Index at 54.79%, continued compliance with the Liquidity Coverage Ratio, and a Capital Adequacy Index of 15.71% versus an 8% minimum. The report highlights a supervisory focus on operational efficiency, stronger asset-liability management, income diversification, and mitigating risks linked to growing concentration in external funding and a higher cost of finance. SBP indicated it will maintain a risk-based supervisory approach, closely monitoring margins, loan quality, and capital strength.
Superintendencia de Bancos de Panama 2025-08-29
Superintendency of Banks of Panama publishes July 2025 Banking Activity Report showing CBI net loan portfolio up 8.01% and assets up 6.7%
The Superintendency of Banks of Panama's July 2025 report shows continued expansion of the International Banking Center, driven by net lending. Deposits remain the primary funding source, with liquidity and capital indicators above regulatory minimums, despite higher funding costs and increased reliance on external funding. The report emphasizes a supervisory focus on operational efficiency, asset-liability management, and risk mitigation related to external funding concentration and finance costs.