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Panama: lending & credit regulation

Regulated

Panama lending regulated by SBP under Law 3/85; focus on prudential credit risk management

Lead regulator:
Superintendencia de Bancos de Panama
Key law:
Law 3 of 1985
Last updated:
2026-07-12

The lending and consumer credit sector in Panama is primarily regulated by the Superintendencia de Bancos de Panama (SBP) under Law 3 of 1985 and its subsequent amendments. The regulatory framework emphasizes prudential oversight, including the management of credit risk, risk-weighted assets, and provisioning for modified loans.

Recent regulatory activity has focused on updating credit risk parameters, recognizing international rating agencies, and clarifying the treatment of restructured loans and collateral. The SBP also sets local market reference rates for residential mortgage loans and oversees specific lending schemes, such as those for the Colon Free Port.

While the provided documents detail extensive prudential rules for banks, they do not explicitly define a separate licensing regime for non-bank consumer lenders or microfinance institutions, leaving the status of non-bank lending activities less clearly defined in this specific context.

Who regulates

  • Superintendencia de Bancos de Panama

    Primary supervisor of banking and credit institutions

    [1]

Core laws & rules

  • Law 3 of 1985 (1985)

    The core legislation governing banking activities, including the establishment of reference rates for residential mortgage loans and the regulatory framework for supervised entities.

    [1]

  • Law 60 of 2018 (2018)

    Amends Law 2 of 1992, relevant to specific lending schemes such as preferential mortgage loans for the Restoration-Colon Free Port.

    [2]

Licensing & registration

  • Banking and Credit Institutions

    Supervised entities must obtain prior written authorization from the SBP for certain activities, such as using fiduciary schemes to write off repossessed assets. Specific licensing categories for non-bank consumer lenders are not detailed in the provided documents.

    [3]

Restrictions & warnings

  • Banks are subject to strict credit risk management rules, including provisioning for modified loans, risk concentration limits, and country risk management policies. Fiduciary schemes used to evade reserve requirements are prohibited without prior SBP authorization.

    [3][4][5][6]

Direction of travel

  • The regulatory environment is actively updating prudential standards, including the recognition of new rating agencies and collateral types. The focus remains on maintaining financial stability and effective credit risk management within the banking sector.

    [4][5]

Sources

  1. Residential Mortgage Loans (Law 3/85, 11/90, 5/94, 28/95, 50/99,65/2003, 29/2008, 28/2012, 63/2013, 66/2017, 94/2019,255/2021) · 2026-01-01
  2. CF-L60-18-No.003-2026. CIRCULAR-2026-0065. Law 60-2018 Amending Law 2 of 1992. Restoration-Colon Free Port · 2026-01-01
  3. Fiduciary Schemes Using REIT-Type Vehicles to Write Off Repossessed/Adjudicated Assets and Evade Regulatory Reserve Requirements · 2026-01-01
  4. Agreement No. 8-2025: Modification of Articles 39, 41, and 42 of Agreement No. 4-2013 on Credit Risk Management · 2025-08-19
  5. Agreement No. 2 (2025) Modifying Article 3 of Agreement No. 3-2016 on Risk-Weighted Assets · 2025-03-24
  6. General Resolution No. 7-2000 Establishing Provisions on Country Risk Management · 2018-06-06

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This guide is compiled automatically from 6 primary-source documents published by Panama's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.