National Bank of Panama Banking System Overview

The National Bank of Panama's banking system is a key part of the country's financial infrastructure. The bank offers a wide range of financial services, including personal and corporate banking, investment banking, and international banking.

The bank's operations are regulated by the Superintendency of Banks of Panama, which ensures that all banking activities are conducted in a safe and sound manner. The bank's headquarters is located in Panama City.

The National Bank of Panama has a strong presence in the country, with over 50 branches and a network of ATMs. This makes it easy for customers to access their accounts and conduct financial transactions.

The National Bank of Panama plays a crucial role in maintaining banking stability in the country. It is the Central Bank for all Panama banks and holds part of the reserve required by the banks.

The National Bank of Panama sets up reserve requirements that are stricter than those in the USA or European banks. Panama requires up to double the reserve that the FED does, which leads to more liquidity in the banking system.

In times of crisis, the National Bank of Panama acts quickly to provide support. During the 2008-09 global financial crisis, it set up a credit line to help struggling banks.

The Panama Government also steps in to provide additional support. In 2009, a 1.1-billion-dollar fund was set up, equivalent to 5% of total deposits, which was used to help banks in need.

This fund was not needed for long, as by the end of 2009, the banking system had recovered.

Panama has three classes of banks: General banks, International license banks, and State-owned banks, with the latter being National Bank of Panama and Caja de Ahorros.

Domestic, foreign, and state-owned banks in Panama compete on equal terms and are regulated by the Superintendencia de Bancos (Banking Supervisory Authority).

Panama's reserve requirements are stricter than those in the USA or Europe, with banks needing to hold up to double the reserve required by the FED, resulting in more liquidity in the banking system.

The National Bank of Panama holds part of this reserve and acts as the Central Bank for all Panamanian banks.

Panama's banking legislation is designed to provide a stable and secure environment for all types of banks.

There are three classes of banks in Panama: General banks, International license banks, and State owned banks.

General banks have a license to operate full-service banks.

International license banks, also known as offshore banks, can only accept deposits from international persons or entities.

State owned banks are regulated and licensed by the Superintendencia de Bancos (Banking Supervisory Authority).

Both state-owned banks, National Bank of Panama and Caja de Ahorros, are part of the Panamanian Banking Association.

To open a bank account, you'll need to provide identification, such as a government-issued ID or passport, as required by the Bank Secrecy Act.

You'll also need to provide proof of address, such as a utility bill or lease agreement, to verify your residency.

The minimum opening deposit required can vary depending on the bank and account type, but some banks may require a minimum deposit of $25 or more.

You'll typically need to provide your Social Security number or Individual Taxpayer Identification Number (ITIN) to open a bank account.

In some cases, you may be required to provide additional documentation, such as a driver's license or state ID.

The bank will also require you to sign a contract or agreement outlining the terms and conditions of the account.

Panama's banking system is much stricter in terms of reserve requirements than the USA or European banks, requiring up to double the reserve that the FED does.

This leads to more liquidity in the banking system, making it easier for banks to meet their customers' needs.

In the 2008-09 global financial crisis, a few Panama banks experienced some liquidity issues due to some freezing of external credit lines.

The National Bank of Panama was able to quickly set up a credit line to help, and by January 2009, the Panama Government had a 1.1-billion-dollar fund set up, which was 5% of total deposits.

Less than 10% of this fund was ever loaned out, and by the end of the year, the fund was no longer needed.

Panama banks escaped the global crisis unscathed, unlike the USA or many European countries.

The reserve requirements are also helped by the National Bank of Panama, which asks all Panama banks to hold part of this reserve.

Banks in Panama are licensed and regulated by the Banking Supervisory Authority (Superintendencia de Bancos). This ensures that all banks operate within a framework that prioritizes customer safety and financial stability.

There are two main types of licenses that banks in Panama can obtain: General (full) license Class A and International license Class B.

A General (full) license Class A allows banks to operate both within and outside Panama, which is the majority of banks in the country.

International license Class B, on the other hand, is for banks that are physically present in Panama but can only do business with foreigners and non-Panamanian residents. They can only open accounts and accept deposits from individuals or organizations located overseas.

The two state-owned banks in Panama, the National Bank of Panama (Banco Nacional de Panamá) and Caja de Ahorros de Panamá (Savings Bank of Panama), are licensed and can only do business within Panama.

Here is a summary of the two main types of licenses: