Agreement No. 013-2022: Adding Article 3-A to Agreement No. 1-2010 on Integrity and Accuracy of Financial Statement Information

Republic of Panama
Banking Superintendence
AGREEMENT No. 013-2022
(November 22, 2022)
"Adding Article 3-A to Agreement No. 1-2010 on the integrity and accuracy of information contained in financial statements"

THE BOARD OF DIRECTORS

in the exercise of its legal powers, and

CONSIDERING:

That following the issuance of Decree-Law No. 2 of February 22, 2008, the Executive Branch prepared a systematic ordering in the form of a single text of Decree-Law No. 9 of February 26, 1998, and all its modifications, which was approved through Executive Decree No. 52 of April 30, 2008, hereinafter referred to as the Banking Law;

That in accordance with items 1 and 3 of Article 5 of the Banking Law, the objectives of the Banking Superintendence are to ensure the maintenance of the solidity and efficiency of the banking system, as well as to foster public confidence in the banking system;

That in accordance with item 5 of Article 11 of the Banking Law, it is the technical competence of the Board of Directors to establish, within the administrative scope, the interpretation and scope of legal or regulatory provisions in banking matters;

That in accordance with Article 87 of the Banking Law, general and international license banks must present, within three months following the close of each fiscal year, their corresponding audited financial statements observing the accounting, technical, and prudential standards established by this Superintendence;

That Article 88 of the Banking Law establishes that banks must publish in a newspaper of national circulation in the Republic of Panama, an unsigned copy of their audited financial statements, with their respective clarifying notes, if any, within thirty days following their submission to this Superintendence;

That the publication and exhibition of financial statements in a newspaper of national circulation allows the general public to obtain information regarding the financial situation presented by banking entities for the taking of their economic decisions, and for greater transparency and confidence in the financial system;

That with the objective of contributing to environmental sustainability, the Banking Superintendence of Panama as part of its management has implemented various actions internally within the institution aimed at reducing the impact of paper printing on the environment, through the review of documented information, supported by the use of digital tools and electronic signatures;

That Agreement No. 1-2010 of January 19, 2010, establishes the guidelines that banks must follow to guarantee the truthfulness and integrity of the information contained in financial statements and the formalities for their submission to this Superintendence;

Agreement No. 013-2022

That in working sessions of this Board of Directors, the need and convenience of modifying Agreement No. 1-2010 has been manifested, in order to establish criteria regarding the publication of audited financial statements in a newspaper of national circulation in the Republic of Panama.

AGREES:

ARTICLE 1. ADDITION. Article 3-A is added to Agreement No. 1-2010 of January 19, 2010, as follows:

ARTICLE 3-A. PUBLICATION OF AUDITED FINANCIAL STATEMENTS. In accordance with what is provided in Article 88 of the Banking Law, banks must publish in a newspaper of national circulation in the Republic of Panama their audited financial statements within thirty days following their submission to this Superintendence.

For the fulfillment of what is provided in this article, banks may publish their audited financial statements in a newspaper of national circulation in the Republic of Panama in printed form or supported by digital means, as indicated below.

In the case of banking entities that opt to rely on digital means, they must comply with the guidelines established in this article, ensuring that the following comparative information is published in printed form:

1. Statement of Financial Position;
2. Statement of Results or Statement of Income or Loss.

The complete audited financial statements, including the notes thereto, along with the report of the independent auditors, must be published digitally and be accessible through a QR code or other similar technology inserted in the printed newspaper, which will allow the reader to obtain the comprehensive information of the bank's audited financial statements. For this purpose, the printed publication will include the following text:

"The complete audited financial statements of the Bank as of (fiscal year-end) and for the year ended on that date, including the respective notes, along with the report of the independent auditors, are available to interested parties using the QR code included on this page or by visiting our website (internet address)".

Banking entities that carry out the publication of their financial statements relying on digital means will be responsible for ensuring that this type of publication is accompanied by the physical publication referred to above, in accordance with the format established in the annex of this Agreement.

Banks must ensure that the publication, by digital means, of the audited financial statements is freely accessible to the entire public and displays, without restriction, in a visible place, all the information that the audited financial statements must present.

Banking entities that carry out the publication of their financial statements without relying on digital means must ensure that all information concerning the financial statements is published in printed form in the newspaper of national circulation.

Agreement No. 013-2022

ARTICLE 2. EFFECTIVENESS. The provisions of this Agreement will begin to govern from the date of its promulgation.

Given in the city of Panama, on the twenty-second (22) day of the month of November of two thousand twenty-two (2022).

NOTIFY, PUBLISH, AND COMPLY.

THE PRESIDENT THE SECRETARY
Rafael Guardia Pérez Felipe Echandi Lacayo

Agreement No. 013-2022

ANNEX
Bank Logo
NAME OF THE BANK
Publication of audited financial statements as of (fiscal year-end) and for the year ended on that date, in accordance with what is established in Agreement No. 1-2010 issued by the Banking Superintendence of Panama

The complete audited financial statements of the Bank (Name of the Bank) as of (fiscal year-end) and for the year ended on that date, including the respective notes, along with the report of the independent auditors, are available to interested parties using the QR code included on this page or by visiting our website (internet address).

NAME OF THE BANK
Statement of Financial Position
(fiscal year-end)
(amounts in balboas)

---

NAME OF THE BANK
Statement of Results
For the year ended (fiscal year-end)
(amounts in balboas)

---