As a result of the changes made by the Assembly in Panama regarding the total payment of the resources placed on deposit in cases where the banks are in the process of liquidation, the Banking Association is asking for the construction of consensual public policies.

The plenary session of the Assembly, after correcting the formulations made to the document by the Executive, passed in third debate Project 308, which adds provisions to Decree Law 9 of 1998 on the Banking System in Panama, the legislative body informed last September 30.

See “Financial Services: Business Potential in Central America”

According to Raul Pineda, the deputy proposing the initiative, this project does justice to depositors so that the relationship between the client and the bank is equivalent when paying debts and receiving their deposits.

Pineda added that “… legislation was passed for equity in compensation so that when a bank is in the process of liquidation, the depositor receives their entire money from the lender and not a percentage of that amount. When it is the customer who owes the agent, the agent must pay the entire debt and not a percentage of it.”

The legislative project in question had already been vetoed by the Executive Branch, but after correcting the objections it was again endorsed by the Assembly.

Regarding the amendments to the legal framework, the Panama Banking Association (ABP) issued its opinion on October 1. The document issued by the union states that “… they have no objection to analyzing and considering proposals to strengthen the legal framework according to the new needs of the country. We make a responsible call to all sectors of the country to resume the construction of consensual public policies, based on evidence and above all designed to enhance the growth of our country.”

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