Agreement No. 6 (2026) Modifying Article 9 of Agreement No. 1-2011 on Transparency Guidelines for Banking Products and Services

Republic of Panama
Superintendence of Banks of Panama
AGREEMENT No. 6-2026
(July 22, 2026)
"By which Article 9 of Agreement No. 1-2011, which sets guidelines for the transparency of information regarding the use of banking products and services, 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 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 paragraphs 3 and 4 of Article 5 of the Banking Law, it is the objective of the Superintendence of Banks to promote public confidence in the Banking System and to ensure legal balance between the banking system and its clients;

That in accordance with paragraph 5 of Article 11 of the Banking Law, it is the responsibility of this Superintendence to establish, within the administrative sphere, the interpretation and scope of legal or regulatory provisions in the banking matter;

That in accordance with paragraph 19 of Article 16 of the Banking Law, the Superintendent of Banks has the authority to ensure that banks provide their clients with information that ensures the greatest transparency of banking operations;

That the principles established in Titles V and VI of the Banking Law aim to bring the necessary and desired equity to the contractual relationship to guarantee the balance of the parties;

That in accordance with Article 192 of the Banking Law, banks are obligated to provide their services to banking clients with transparency, probity, and equity;

That the transparency of information related to banking products and services constitutes an important factor for promoting competition in the market, which contributes to the sound development of the banking system and allows clients to make their decisions on a more informed basis;

That by Agreement No. 1-2011 of January 4, 2011, this Superintendence established the guidelines for the transparency of information regarding the use of banking products and services;

That Article 9 of Agreement No. 1-2011 establishes that banks must inform clients, from the beginning of the relationship, of the terms and conditions applicable to the particular contract;

That in sessions of this Board of Directors, the need and convenience of modifying Article 9 of Agreement No. 1-2011 has been highlighted, in order to strengthen the transparency of banking products and services.

Agreement No. 6-2026
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AGREES:

ARTICLE 1. Article 9 of Agreement No. 1-2011 of January 4, 2011, is hereby amended as follows:

ARTICLE 9. MEANS TO INFORM THE CLIENT ABOUT INTEREST RATES, COMMISSIONS, AND CHARGES FOR THIRD PARTIES OF THE PRODUCTS AND SERVICES. Banks must at all times comply with the obligation contained in Article 193 of the Banking Law to inform the client, from the beginning of the relationship, of the terms and conditions applicable to the particular contract.

In the case of active operations under the installment payment system, when approving the operation, banks must communicate the installment amount to the client in writing, with the minimum inherent information detail. Such communication must include the amortization table corresponding to the detailed payment schedule or calendar showing how loan installments will be distributed over time, which must contain at least the following information:

a) The disbursed amount or credit principal; b) The total credit term and the periodicity of installment payments; c) The applicable interest rate, indicating its modality, the effective interest rate, and the method of calculation; d) The amount of each installment, with the corresponding breakdown of principal, interest, and, where applicable, insurance, commissions, and recurring charges associated with the credit (such as closing fees where applicable or other charges); e) The principal balance before and after each payment; f) The date or number of installments; g) The total cost of the credit, understood as the difference between the approved credit amount and the total amount to be paid.

In case of doubts regarding the concepts contained in said document, the bank must clarify them. After reading the document and resolving any existing doubts, a record must be made of having notified the client and having delivered a copy, at no cost, of the amortization table. Furthermore, if during the validity of the credit the banking entity makes variations in the interest rate or changes in the agreed conditions that impact the payment schedule, the banking entity must deliver the newly recalculated amortization table free of charge, at the time of notifying the variation to the client.

In contracts with active operations, entities must state the nominal and effective rates, in this order and consecutively, expressed in annualized form, in letters and numbers highlighted to ensure their visibility, as well as the formula for their calculation.

In the case of active operations, whenever there are variations in interest rates or changes in agreed conditions, the bank must notify the client in advance, who must keep the bank informed about changes in their address, telephone numbers, email, or any other means of notification agreed upon for the purposes of this and other notifications. Likewise, in the event that the insurance policy backing an obligation is expired or cancelled, the bank must ensure that it notifies the client of such condition.

In the case of active operations linked to mortgage loans, where the charging of renewal commissions has been agreed, the bank must send a reiterative notice to the client regarding the charging of the commission, at least two (2) months in advance of the date on which the charge will be made. This notice will be made through the notification means agreed upon in the banking services contract, indicating the amount to be paid, the criterion applied to calculate the commission, the date, and the different methods with which the client has to meet the charge.

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PARAGRAPH: With regard to the notifications provided for in this article, banking entities must ensure that such communications are made to the client through the previously agreed notification means, ensuring that the bank leaves a record of the client's receipt of the notification, which must be recorded in the credit file.

ARTICLE 2. EFFECTIVENESS. The provisions of this Agreement shall enter into force starting from the twenty-second (22) day of October 2026.

Given in the city of Panama, on the twenty-second (22) day of the month of July of two thousand twenty-six (2026).

NOTIFY, PUBLISH, AND COMPLY.

THE PRESIDENT, THE SECRETARY,
Felipe Echandi Lacayo David Alberto Davarro