The International Banking Center in Panama reported a 5.5 percent annual increase in its net loan portfolio through October 2025. Official data released this week shows the sector’s total credit reached $100.1 billion, driven primarily by strong foreign lending activity.
According to the latest Banking Activity Report from Panama’s banking regulator, the growth underscores the sector’s ongoing expansion. The foreign loan portfolio jumped 12.38 percent to $36.83 billion. Domestic lending saw a more modest rise of 1.63 percent, reaching $63.26 billion.
“The credit portfolio consolidates as the main engine of asset expansion,” the report from the Superintendency of Banks of Panama stated. [Translated from Spanish] “Banks continue advancing in credit placement while implementing business line expansion initiatives.”
This credit growth directly fueled a rise in the center’s net assets, which climbed 4.44 percent to $160.38 billion. Analysts view the figures as a sign of strategic growth in productive assets despite a competitive regional landscape for liquidity.
Deposits and New Credit Issuance Show Strength
Deposits remained the primary funding source for the banking system, growing 5.91 percent to $115.29 billion. Foreign deposits led this increase with a 10.21 percent surge. Private individual deposits within the foreign segment grew an impressive 13.25 percent.
This deposit behavior strengthens Panama’s role as a regional funding hub. The nation’s International Banking Center continues to attract capital from abroad.
New credit flows within the National Banking System also expanded, totaling $22.2 billion from January through October. This represents a 5.2 percent increase compared to the same period in 2024. The commercial portfolio captured the largest share of new disbursements, skyrocketing by approximately 47 percent.
Other sectors saw notable increases as well. Personal consumption loans grew 3.2 percent, livestock lending rose 3.3 percent, and mining and quarrying activity witnessed a significant jump from a low base.
Regulatory Ratios Indicate a Robust Financial Cushion
The report highlighted exceptionally strong capital and liquidity buffers within the banking center. Panama’s Banking System of Panama maintained a Capital Adequacy Ratio of 16.3 percent, well above the regulatory minimum.
Liquidity coverage ratios also remained high at 53.4 percent. Both key metrics nearly double their required thresholds, providing what officials describe as a robust cushion to absorb potential external or credit shocks.
“The IBC maintains solid fundamentals of liquidity, capital and profitability,” the superintendent’s report concluded. [Translated from Spanish] “This positions it well to face a more demanding financial environment.”
This financial strength is considered a critical advantage as global conditions tighten. The strong capital position allows banks to continue lending while managing international risk.
Looking ahead, the report identifies key areas for the sector to preserve its resilience. Officials emphasize the need for improved operational efficiency and optimized asset-liability management. Further diversification of funding sources and reinforced monitoring of asset quality will also be crucial.
The October data provides a snapshot of a banking sector in growth mode. With credit as its expanding engine and capital ratios at comfortable levels, Panama’s financial center appears poised for sustained activity. Its performance continues to be a significant barometer for the broader regional economy.