Regulatory Alerts2020-10-06
Agreement No. 10 (2020) Modifying Article 31 of Agreement No. 2-2018 on Liquidity Risk Management and the Short-Term Liquidity Coverage Ratio
The Banking Superintendence of Panama issued Agreement No. 010-2020 to amend Article 31 of its liquidity risk management framework by explicitly adding bonds issued by the National Bank of Panama to the Level 2A high-quality liquid assets category. This regulatory change requires supervised banks to classify these domestic sovereign bonds as eligible liquidity buffers, provided they maintain an international credit rating of at least BBB-. The amendment aligns Panama’s liquidity coverage ratio standards with Basel Committee guidelines while strengthening domestic funding stability and diversifying bank liability profiles.
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