Agreement No. 2-2026: Modification of Article 2 of Agreement No. 3-2016 on Risk-Weighted Assets

Republic of Panama
Banking Superintendence of Panama

AGREEMENT No. 2-2026
(January 20, 2026)

"By which Article 2 of Agreement No. 3-2016, which establishes rules for the determination of risk-weighted credit and counterparty risk assets, is modified"

THE BOARD OF DIRECTORS
In exercise of its legal powers, and

CONSIDERING:

That following the issuance of Law Decree No. 2 of February 22, 2008, the Executive Branch prepared a systematic ordering in the form of a single text of Law Decree 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 items 1 and 2 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 strengthen and foster favorable conditions for the development of the Republic of Panama as an international financial center;

That in accordance with items 3 and 5 of Article 11 of the Banking Law, it is the technical competence of the Board of Directors to approve the general criteria for the classification of risk assets and the guidelines for the establishment of reserves to cover risks, and to fix, within the administrative scope, the interpretation and scope of legal or regulatory provisions in banking matters;

That in accordance with Article 70 of the Banking Law, every general license bank and international license bank whose origin supervisor is the Superintendence, must maintain capital funds equivalent to at least eight percent (8%) of the total of its assets and off-balance sheet operations that represent a contingency, weighted according to their risks, as well as primary capital equivalent to no less than four percent (4%) of its assets and off-balance sheet operations that represent a contingency, weighted according to their risks;

That through Agreement No. 3-2016 of March 22, 2016, and its modifications, rules are established for the determination of risk-weighted credit and counterparty risk assets;

That through Article 2 of Agreement No. 3-2016, the classifications of assets by categories are established, for the purposes of their risk weighting;

That in accordance with the guidelines established by the Basel Committee on Banking Supervision, instruments issued by the Council of Europe Development Bank (CEB) are considered with a risk weight of 0%;

That in working sessions of this Board of Directors, the need and convenience of modifying Article 2 of Agreement No. 3-2016 has been manifested, in order to include the Council of Europe Development Bank (CEB) in Category 1 of assets with a 0% risk weight.

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Agreement No. 2-2026

AGREES:

ARTICLE 1. Items 1.4 and 1.8 of Category 1 (0% weight) of Article 2 of Agreement No. 3-2016 of March 22, 2016, are hereby amended as follows:

"ARTICLE 2. CLASSIFICATION OF ASSETS BY CATEGORIES. For the purposes of their risk weighting, in accordance with what is provided in Article 70 of the Banking Law, assets shall be classified in the following categories whose risk percentage is indicated below:

...

1. Category 1 (0% Weight):

1.1. ...

1.2. ...

1.3. ...

1.4. Instruments issued or guaranteed by the International Monetary Fund (IMF), the Bank for International Settlements (BIS), the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Inter-American Development Bank (IDB), the European Investment Bank (EIB), the Asian Development Bank (ADB), the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), the Andean Development Corporation (CAF), the European Bank for Reconstruction and Development (EBRD), the Council of Europe Development Bank (CEB), and by any other multilateral development organizations approved by this Superintendence.

1.5. ...

1.6. ...

1.7. ...

1.8. Loans guaranteed by instruments issued or guaranteed by the International Monetary Fund (IMF), the Bank for International Settlements (BIS), the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Inter-American Development Bank (IDB), the European Investment Bank (EIB), the Asian Development Bank (ADB), the African Development Bank (AfDB), the International Fund for Agricultural Development (IFAD), the Andean Development Corporation (CAF), the European Bank for Reconstruction and Development (EBRD), the Council of Europe Development Bank (CEB), and by any other multilateral development organizations approved by this Superintendence.

1.9. ...

1.10. ...

1.11. ..."

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Agreement No. 2-2026

ARTICLE 2. EFFECTIVENESS. This Agreement shall enter into force from its promulgation.

Given in the city of Panama, on the twentieth (20) day of the month of January of two thousand twenty-six (2026).

LET IT BE COMMUNICATED, PUBLISHED, AND COMPLIED WITH.

THE PRESIDENT,

(Signature)
Felipe Echandi Lacayo

THE SECRETARY,

(Signature)
David Alberto Davarro