If you are going to deposit money in a bank in Panama, do your homework. While rates stay strong at 3 to 5%, be careful. I am opting for Banco General is one of the best banks and strong compared to some of the others. I have also noticed a decline in service like Scotiabank who recently closed in Boquete.
High Level of Loans with Relief Measures is Key As of YE20, Panama still reported one of the highest levels of modified loans (34.7% of total loans) due to relief measures in Latin America, reflecting the harsher impact of the pandemic on the operating environment compared with other countries in the region. As expected, delinquency metrics were still stable (2.2% as of Jan 2021) due to transitory relief measures that will remain in place until the end of 1H21. The Panamanian banking system’s financial performance weakened moderately in 2020 and is poised for a lackluster 2021, as the recovery will not be sufficient to offset the decline in output last year. In 2H21, the impact of the coronavirus crisis on clients’ creditworthiness will be more evident in the banks’ figures. Despite relief measures, profitability was hit hard, contracting by more than half, mostly reflecting higher loan impairment charges due to increased credit risk and a reduction in net interest income as loans contracted. Capital and funding remained stable and sound in general, favorable points amid the current crisis. Additionally, the government created a USD1 billion trust fund, administered by Banco Nacional de Panama, to provide support to the banking system for credit growth and liquidity (USD500 million for each purpose).
Stay Safe!!