What impact would a global banking crisis have on Panama?

The banking supervision of Panama believes that the risk of contagion for the local system, due to banking problems in United States and Europeis “very limited”.

superintendent Amauri Castillo He added that domestic lenders are not exposed to interbank deposits or other investments.

According to Castillo, Panama has a very solid banking system.

Contagion risk is the possibility of a loss that the bank may suffer directly or indirectly due to negative events in companies of its own economic group or companies that perform similar activities in the place where it is located or in the financial system of another country. .

At the end of last year, the national banking system recorded a capital adequacy rate of 15.34 percent and a liquidity rate of 57 percent.

Castillo has already stressed that key variables were “strong”, including solvency, capital adequacy and liquidity levels.

The global banking crisis comes after the biggest bank collapse in EUSA, Silicon Valley Bank.

This collapse, according to CNN, spooked markets, hurt weaker financial institutions that are already struggling with the unintended consequences of rising interest rates and self-inflicted damage.

After what happened with Silicon Valley Bank, another US regional bank, Signature Bank, was closed, and a third, First Republic Bank, was strengthened.

This scenario raised the alarm for a bank of global financial importance: Credit Suisse, whose threats are now under control.

However, the markets are still nervous: the benchmark indices of US and European bank shares lost 20% and 13%.