Panama: Financial Sector Assessment Program - Detailed Assessment of Observance and Basel Core Principles for Effective Banking Supervision

Since the last Financial Stability Assessment Program (FSAP) in 2012, the Superintendency of Banks of Panama (SBP) has made significant progress in updating its regulatory and supervisory framework. The SBP has implemented key elements of the international regulatory reform agenda, including Basel III and IFRS9, and has introduced comprehensive new regulations in a number of important areas, including corporate governance and risk management. The SBP has also adopted a structured risk-based approach to its supervision that is supported by a sophisticated IT system. Notwithstanding the progress made in many regulatory and supervisory areas since the last FSAP, there remain a number of gaps in the legal and regulatory framework and some areas for improvement in the SBP’s supervisory approach.