In Panama, a group of businessmen from the Colon Free Zone have expressed concern about the bank’s intervention, because although it was under investigation, it was allowed to engage with several companies.
As of September 9, local authorities took over the operational and administrative control of AllBank, Corp, arguing that the group of “shareholders did not respond in a timely manner to the requirements of the corrective actions” that were instructed. In October the Superintendence informed that the institution will continue to be taken, in this case until November 8.
A letter sent by a group of investors from the Colon Free Zone (ZLC) to the Superintendence of Banks of Panama indicates that AllBank is the only entity in the country allowing transactions with Cuba and that in order to establish a contract it requested large sums of money.
Prensa.com reviews that “… It is known by us that this bank was being investigated for different irregularities more than a year ago, however, allowed it to commit on a large scale the capital of countless companies,” the entrepreneurs complain.”
Faced with this situation, the group of businessmen is asking the regulator for an immediate extraordinary solution to the liberation of the companies’ working capital.
The article adds that “… On the other hand, the Chamber of Commerce, Industries and Agriculture ask for ‘support before the Superintendence of Banks of Panama to give extraordinary attention to users of AllBank who maintain commercial accounts of operation to not be even more affected by what the economic downturn has caused’. The businessmen say they feel ‘helpless and uncertain’ and warn that ‘the operation of numerous companies that generate employment and taxes to our country is in danger.”
Truly a solution to the overall bank crisis needs to be found. The cost of banking has gone from less then 1% transaction costs to over 10%. Then means 10% of everything you buy is now the cost of paying for it. In the end the product is the smallest cost of anything you buy. Economies run on liquidity being able to move money to where it is needed. Panama use to be one of the few oasis of free banking. now due to pressure mostly by the US it has giving up that right. Interestingly one of the only countries left that does not follow any of the rules that it imposes on the rest of the world. And it has the only international central clearing house bank. but allows 100% privacy in banking and no reporting of where the funds come from. Sad that Panama has to destroy its economy at the bidding of the US.