| Panama economy is dictated mostly by service | | | | international banks and can employ both local and |
| industries. This includes tourism, banking, Panama | | | | international employees. International license, on the |
| financial institution, telecommunications, Panama Canal | | | | other hand, should only employ non-residents of |
| and the Colon Free Zone to name a few. As a | | | | Panama as it is provided only to international banks. |
| service oriented country, most of its infrastructure is | | | | Based on the assessment of International Monetary |
| towards servicing needs like banks, financial institutions, | | | | Fund in 2001, Panama's banking system meets most |
| hotels, resorts, telephone facilities, and others. One of | | | | of the standards in international banking system. This |
| the contributory factors for Panama's economic | | | | means that Panama has meet standards in accounting |
| stability is the provision and policies in Panama financial | | | | and auditing, Basel capital framework for capital |
| institution. | | | | adequacy, implement standard limitations on loans and |
| Because of the strategic location of Panama, it has | | | | investments, and standard for managing risk on |
| provides financial services to the areas in Central | | | | interest, country risk, and internal risks. In the same |
| America, South America and other parts of Europe. In | | | | assessment, IMF noted that Panama operates more in |
| fact, it is one of the pioneer centers for offshore | | | | general banks that offer opportunity for both |
| banking and financial services worldwide. Panama then | | | | non-residents and residents even though it is known |
| becomes one of the havens for financial security in | | | | for its offshore financial services. In essence, the |
| Latin America. Panama has seventy commercial | | | | general license carried 82 percent of assets which |
| banks per February census of 2004. Among the | | | | means that Panama is gaining more control on its |
| seventy banks, there are twenty-nine international | | | | asset in the bank sector. International license of banks |
| banks, thirty-nine local banks, and two state banks. | | | | only hold 18 percent of assets. |
| Basically, the banking sector of Panama comprises 8 | | | | Other Panama financial institution includes insurance |
| percent of the country's GDP, employing | | | | and securities which are relatively small compared to |
| approximately 10,000 people. Among other Panama | | | | the banking sector. The regulatory agency for |
| financial institution, the banking sector has the highest | | | | insurance is the Superintendence of Insurance while |
| contribution in GDP. | | | | the agency for securities is the National Commission |
| The banking sector in Panama is regulated by | | | | Securities. |
| Superintendence of Banks instead of the common | | | | Generally, Panama financial institution is one |
| central banks. This makes Panama unique in it banking | | | | contributory factor of Panama's economic stability. The |
| systems compared to other countries in Latin America. | | | | fiscal policies in Panama favor foreign investments and |
| Banks in Panama are licensed either for general | | | | other financial services to foreigners. It comes hand in |
| license, international, or representative. With the three | | | | hand with tourism campaign which opens many |
| types of banking license, the bank is required to have | | | | opportunities for foreigners to invest in the country. |
| an office within Panama where there are | | | | The current result is growth in GDP and economic |
| corresponding office staffs and personnel. The general | | | | stability. |
| license of banks in Panama can be given to local and | | | | |