Regulatory Alerts2018-06-06
General Resolution No. 7-2000 Establishing Provisions on Country Risk Management
The Superintendent of Banks of Panama issued General Resolution No. 7-2000 to mandate that banks implement efficient management policies for identifying, quantifying, and controlling country risk in their international operations. The resolution defines country risk categories ranging from normal to high risk based on economic indicators and credit ratings, requiring banks to establish specific provisioning criteria and maintain detailed risk assessment documentation. It further stipulates accounting standards for disclosing country risk profiles and allows foreign bank branches to credit provisions made by their headquarters under specific supervisory conditions.
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