Foreign Deposits Increase 18.78% at Panamanian Banks

Customers from countries such as Ecuador, Venezuela, Colombia, and Central America have chosen Panama’s Banking Center to safeguard their funds because of the trust generated by local economy performance.

Savings from foreign clients in the financial system in Panama increased by almost 19% last year, compared to 2010. In November 2011, foreign deposits totaled $24,635,000,000, an increase of 18.78% or $3,895,000 more than in November 2010, when it was $20,740,000,000, according to data from the Superintendency of Banks of Panama (SBP).

Preliminary reports estimate that Panama grew 10.5% in 2012, which allows a further development in the banking center and increment in the confidence of foreign depositors.

According to the Superintendency of Banks of Panama (SBP), the Panamanian Banking System remains attractive for depositors, mainly from the Central and South America region, especially in the current financial situation.

Bankers and economists say that the financial stability shown by Panama, during the financial crisis of 2009 and the fact that deposits are made and withdrawn in dollars, gives added value to the country.

Adolfo Quintero, former president of the College of Economics of Panama, said that another favorable factor is that Panama offers greater opportunities than other countries, for example,

the U.S. and the granting of visas.

Otto Wolfschoon Jr., Executive Vice-President of Global Bank, explained that the National Banking System has earned the confidence of foreign customers “because of the financial stability and strength shown within the context of a booming national economy, investment grade, and excellent future prospects.”

The rating agencies Fitch Ratings, Moody's, and Standard & Poor's awarded Panama the “Investment Grade” in 2010.