Panama Banking Regime Undergoes Reforms in Supervision

In the thirty years since the enactment of Cabinet Decree 238 of 1970 as the Banking Law of Panama, the Panamanian banking system has transformed itself from a hub of brass-plate banking companies into one of the premiere offshore banking centers of the world, with more than one hundred chartered banks. The Panamanian banks currently have US$5,656 billion in deposits, US$5,647 million being deposits from foreign account holders (Centro Financiero, Panama, Nov. 1997). Legal use of the U.S. dollar and lack of exchange or currency restrictions since its independence in 1903, as well as the impact of finance-related employment, ensure the willingness of Panamanians to continue supporting their banking center. Panama participates in international banking supervision as a member of the Offshore Group granted observer status in the Bank of International Settlements, along with Bahamas, Bermuda, Hong Kong, and Singapore... [more]