Panama’s risk of contagion from banking woes in the United States and Europe is “very limited”, an official with banking regulator SBP said on Thursday, adding that local lenders have no exposure from interbank deposits or other investments.

“We can count on a very solid banking system,” Amauri Castillo, an SBP superintendent, said at a conference in Panama City.

Panama’s international banking center (CBI) held assets totaling some $140 billion at the end of last year, up 5% from 2021.

Castillo said last week while presenting 2022 results that key variables were all “robust,” including solvency, adequate capital and liquidity levels, with results showing profits rose 45% from 2021, landing ahead of pre-pandemic levels.

At the end of last year, Panama’s national banking system reported a capital adequacy ratio of 15.34% and liquidity ratio of 57%.