Currently there is a huge collapse in the global banking sector, which started in the USA and is quickly spreading to other countries and is expected to trigger a global recession. With banks failing, Americans are quickly looking for a safe place to keep their money.

Panama Banks are not failing but rather they are healthy and flush with cash!

Here is an excerpt from a recent Reuters article:

Panama's banks are flush with liquidity and well placed to weather the widening international credit crisis, the country's banking superintendent told Reuters on Monday.

Olegario Barrelier said liquidity in Panama's banking sector stands at around 58 percent of deposits, with manageable exposure to international markets pummeled by the U.S. credit crisis.

"At the moment our banks are good, very good. They are healthy, they are liquid, capital is nearly double what is required. They are being financed by local deposits and are not dependent on external financial markets," he said.

Long a center for offshore banking, dollarized Panama is home to almost 90 international banks, making it one of Latin America's largest banking centers.

...Barrelier said the global crisis would eventually hit Panama, but that the effect would likely be a slower economy rather than damage to the financial system.

Since January banks in Panama have been encouraged to tighten credit to cool spiraling annual inflation, which is near 10 percent.

The economy is expected to post a growth of 9.5 percent this year.

Panama didn't get into Subprime mortgages

Panama banks have always been conservative requiring a 25% down payment from Panama residents or  30% down payments from non-residents.  The concept of subprime mortgages, no money down, 5% or even 10% down is a completely foreign concept here in Panama.  Panama banks are still as traditional as ever giving out only safe loans, thus they are not exposed to the risk that is causing all of the global financial problems right now.  

Panama is a micro-economic climate influenced by different factors

Panama has two coastlines full of sandy beaches. Ironically, buying sand in Panama is almost impossible these days because it is a key ingredient in cement. Both the canal and the the building boom in Panama have created a demand that outpaces supply sharply.

Panama's economy is heavily influenced by the Panama canal expansion project.  Its effects can be felt everywhere.  That in combination with a massive building boom caused by wealthy individuals from around the world moving to Panama, is the basis for a very strong economy.

Wealthy Americans are sending money in bucketloads into Panama for safe keeping

As the US economy continues to collapse, the phones at our law firm are ringing off the hook with people looking for a safe place to keep their money.  Panama is a logical choice because it is one of the largest offshore banking centers located in a stable environment.  Many countries including the USA and China have a vested interest in Panama's stability because of their reliance on the Panama canal.

Panama Bank Safeguards

The government of Panama's NBC (National Banking Commission) ensures depositor safety by enforcing strict conservative banking practices.  The NBC watches panama banks through monthly audits that prevent problems before they get out of hand.  The NBC also has a great deal of power and flexibility to deal with banks and and potential problems should they occur.  Panama banks are very liquid.  As of this writing, most Panama banks have double the required cash.  Of course some banks are definitely in a better position than others. What needs to be understood is that Panama has no central bank and as such does not have a lender of last resort.  This forces the banks into conservative lending practices because there is no one to "bail them out".

If you would like to put your money somewhere safe to weather the current financial crisis, call us.  Would you rather put your money into a booming economy where banks are flush with cash or leave your money to chance in the USA where banks are failing?  We can explain which banks are safest and why.  Call for details.