Panama’s banking system is moderating its growth

A report of Panama’s Banking Superintendent said that the banking sector has not grown as much as expected due to a lower economic growth during 2009, a reduction in raising local funds, stricter credit policies, showing a mark preference for liquidity and the uncertainty in the external financial environment and its access in the external lines of credit.

According to the Superintendent growth for the last 12 months down 13.6 percent.

The growth for the internal credit of the private sector was 13.9 percent and there was a significant falling off in the commercial credit of 9.2 percent and in the mortgage sector 8.6 percent.

The flow of loans between January and February of this year reached the $53 million due to major reductions in mortgages.

The increase in the amount of loans for construction is an indication that projects that are in the building phase will continue at least in the near future.

However people compared with last year.

The report said that the Banking Center has over $64 billion in funds which represents an increment of 8.9 percent in relation to the same period for last year.

The Panamanian banking system has done well in comparison with its counterparts in the region, thanks to the conservative attitude of the banks towards credits and loans in general. The financial institutions are solid and stable said the Superintendent.