Regulatory Alerts2023-06-22
Agreement No. 003-2023 Modifying Article 37 of Agreement No. 4-2013 on Credit Risk
The Superintendence of Banks of Panama issued Agreement No. 003-2023 to modify Article 37 of the Credit Risk Agreement, establishing a special prudential criterion for foreign bank branches. The regulation mandates that qualifying branches, defined as those funded at least 85% by their parent house, must maintain a dynamic provision equal to 1.25% of risk-weighted assets, exempting them from the standard upper limit of 2.5%. This specific provision requirement becomes effective starting March 31, 2024.
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