Fiduciary Schemes Using REIT-Type Vehicles to Write Off Repossessed/Adjudicated Assets and Evade Regulatory Reserve Requirements

July 08, 2026 SBP-SG-CIRCULAR-2026-0070 Mr./Ms. General Manager City Reference: Fiduciary schemes using REIT-type vehicles (Real Estate Investment Trust) to write off repossessed/adjudicated assets and evade the establishment of regulatory reserves Mr./Ms. General Manager: This Superintendency is aware of a scheme, through which repossessed or adjudicated assets in payment of obligations are transferred to a REIT-type real estate investment vehicle, with the declared purpose of writing off said assets from the entities' balance sheets and, thereby, avoiding the establishment of regulatory reserves or provisions corresponding to this type of asset, in accordance with current regulations. We deem it appropriate to point out that, in accordance with Article 8 of Agreement No. 3-2009, the mere legal transfer of an asset to a trust or REIT vehicle does not necessarily comply with the applicable derecognition criteria (effective control, substantial transfer of risks and benefits, absence of retention of residual exposure), so the asset could continue to be recognized, directly or indirectly, in the financial statements of the transferring entity. If the banking entity remains as a creditor, settlor, beneficiary, guarantor, liquidity provider, or related party, retaining risk and benefits with respect to the trust or REIT vehicle, the operation could be considered a mechanism designed to evade the establishment of reserves for repossessed assets, in contravention of the spirit and letter of prudential regulations. The use of trusts or investment vehicles for this specific purpose does not exempt the supervised entity from compliance with capital adequacy, asset classification, and reserve establishment rules. In view of the foregoing, this Superintendency instructs all supervised entities as follows:

1. Mandatory prior consultation. No supervised entity may carry out, subscribe to, or commit to carrying out operations involving the transfer of repossessed or adjudicated assets to trusts, REIT vehicles, or similar structures, without having previously consulted this Superintendency in writing, providing full details of the proposed legal, financial, and accounting structure. The entity would require a non-objection or authorization. "Solidity and trust: guarantors of the rights of banking consumers" Av. Samuel Lewis, Panama Business Tower, ground floor - Tels.: (507) 506 7800 / (507) 506-7900 - Fax (507) 506-7700 / 506-7703 P.O. Box 0832-2397 W.T.C. Panama, Republic of Panama - www.superbancos.gob.pa - email: superbancos@superbancos.gob.pa Official document signed with Qualified Electronic Signature in the Document Transparency System – TRANSDOC of the Superintendency of Banks of Panama, in accordance with Law 83 of 09/11/2012 and Executive Decree No. 275 of 11/05/2018. Use the QR Code to verify the authenticity of the document or the URL: https://sigob.superbancos.gob.pa/consulta?id=lb4vUvCau%2FU31dSwtpXbX%2FiFkIWpc67SUUuOY5gfyGU%3D

Page 2 of 2 SBP-DJ-CIRCULAR-2026-0070 2. Suspension of ongoing operations. Entities that have initiated negotiations or maintain preliminary agreements with the aforementioned fiduciary entity, or with any other offering similar schemes, must suspend them and inform this Superintendency, at the latest, within five (5) business days following the issuance of this circular. 3. Reporting of already completed operations. Entities that have carried out transfers of this nature must report them to this Superintendency within the same period, including the accounting and regulatory treatment applied. It is relevant to note that, for the provisions in the preceding paragraphs, what this Superintendency indicates in this regard, after the consultation has been addressed and the documentation provided has been reviewed, must be observed. The facts described above, whose investigation evidences the possible infringement of applicable regulations, may lead to the initiation of an administrative sanctioning process and the possible application of the sanctions provided for in the Banking Regime. Sincerely, Milton Ayón Wong Superintendent KS/sl