Agreement No. 5-2026: Amending Article 17 of Agreement No. 1-2015 on Capital Adequacy Rules for Banks and Banking Groups

Republic of Panama
Superintendency of Banks of Panama
AGREEMENT No. 5-2026
(June 23, 2026)
“By which Article 17 of Agreement No. 1-2015, which establishes the Capital Adequacy rules applicable to banks and banking groups, is modified” THE BOARD OF DIRECTORS in use of its legal powers, and CONSIDERING:
That following the issuance of Decree Law No. 2 of February 22, 2008, the Executive Body prepared a systematic arrangement in the form of a Single Text of Decree Law No. 9 of February 26, 1998, and all its modifications, which was approved by Executive Decree No. 52 of April 30, 2008, hereinafter the Banking Law; That in accordance with the provisions of numerals 1 and 2 of article 5 of the Banking Law, the objectives of the Superintendency of Banks are to ensure the soundness and efficiency of the banking system; as well as to strengthen and promote favorable conditions for the development of the Republic of Panama as an international financial center; That in accordance with the provisions of numeral 5 of article 11 of the Banking Law, it is a technical attribution of the Board of Directors to establish, in the administrative sphere, the interpretation and scope of legal or regulatory provisions in banking matters; That through Agreement No. 1-2015 of February 3, 2015, and its modifications, the Capital Adequacy rules applicable to banks and banking groups are established; That through article 17 of Agreement No. 1-2015, the leverage ratio of a regulated entity is established by the ratio between ordinary primary capital and total exposure for unweighted on-balance and off-balance sheet assets established by this Superintendency; That in working sessions of this Board of Directors, the need and convenience of modifying article 17 of Agreement No. 1-2015 has become evident, with the purpose of indicating the new criterion that must be used for the leverage ratio in the exposure of derivatives. AGREES:
ARTICLE 1. Article 17 of Agreement No. 1-2015 of February 3, 2015, shall read as follows:
“ARTICLE 17. LEVERAGE RATIO. The leverage ratio of a regulated entity is established by the ratio between ordinary primary capital and total exposure for unweighted on-balance and off-balance sheet assets established by the Superintendency. For the

Agreement No. 5-2026
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determination of the exposure of off-balance sheet operations, the criteria established for credit risk and counterparty risk positions shall be used. The exposure of derivatives shall be the Counterparty Risk Exposure (CRE), as defined in the Agreement by which rules for the determination of risk-weighted assets for credit and counterparty risk are established. The leverage ratio may not be less than 3% at any time. The regulated entity shall inform the Superintendency of compliance with the leverage ratio with the frequency determined.”
ARTICLE 2. EFFECTIVENESS. The provisions of this Agreement shall enter into force upon its promulgation.
Given in the city of Panama, on the twenty-third (23) day of the month of June of two thousand twenty-six (2026).
COMMUNICATE, PUBLISH AND COMPLY.
THE PRESIDENT, THE SECRETARY,
Felipe Echandi Lacayo David Alberto Davarro