Banking and Finances

1. What strengths and weaknesses the Panamanian Banking System can

have?
o Strengths:
Panama has the most modern and successful International Banking Center (CBI) in the
region, meeting the standards of major financial centers around the world.
Therefore, we have a strong banking sector. One of its strengths is that Panama's
banks are very solvent because they issue safe loans, invest conservatively, and keep
larger reserves than U.S. banks.
Due to its openness to foreign financial institutions, dollarization, low inflation and
relative political stability, Panama remains a highly attractive regional financial center.
The strengths of the Banking Center have kept it stable in the face of economic crises
and it is they who promote their competitiveness; analyzing and evaluating them
facilitate
definition of the tasks to be carried out to motivate your further development and
expansion.

o Weaknesses:
Even though the Panama Banking Center has strengths unmatched in the region, a
study carried out by the company KPMG called “Diagnosis for the improvement of
Competitiveness of the International Banking Center of Panama-2009” pointed out that
some of the main weaknesses are:
 lack of specific courts in the field financial,
 insufficiency and deficiency of human capital,
 increase in national insecurity, among others.

2. How many bank mergers have taken places since 2000?

There have been many bank mergers in Panama, as the Superintendence of bank in
Panama has registered, some of those are:
 Acquisition of the stock of PRIMER GRUPO NACIONAL, S.A., owner of the stock
in PRIMER BANCO DE AHORROS, S.A., by BANCO DEL ISTMO, S.A.
Resolution 44-2000 dated 10 July 2000.
 Transfer of all assets, liabilities and equity of the branches in Panama of THE
CHASE MANHATTAN BANK to the HSBC BANK USA branch in Panama. –
Resolution S.B. 47-2000 dated 18 July 2000.
 Merger of BANCO DEL ISTMO, S.A. and PRIMER GRUPO NACIONAL, S.A.
Resolution 52-2000 dated 8 August 2000.
 Merger abroad of BANKBOSTON, N.A. and FLEET NATIONAL BANK.
Resolution S.B. 14-2000 dated 23 February 2000.
 Merger by absorption of BANCO COMERCIAL DE PANAMÁ by BANCO
GENERAL, S.A. Resolution 27-2000 dated 26 May 2000.
 Merger by absorption of BANCO BILBAO VIZCAYA (PANAMÁ), S.A. and
BANCO EXTERIOR, S.A. Resolution S.B. 20-2000 dated 24 March 2000.
  Merger abroad of BANCA INTESA SPA with BANCA COMERCIALE ITALIANA
SPA, main shareholder of BANQUE SUDAMERIS, S.A. – Resolution S.B. 36-
2000 of July 2000.
 Merger of BANCO GENERAL, S.A. with NATIONAL BALTIC INVESTMENT,
S.A., INVERSIONES YODALIS, S.A., INVERSIONES AÑO DOS MIL, S.A. and
INVERSIONES ENSUEÑO. Resolution S.B. 56-2000 dated 17 August 2000.

3. What is a merger of bank?

A situation in which two banks pool their assets and liabilities to become one bank.
Many banks see an acquisition or merger as a chance to expand their reach or scale up
operations quicker.