BRIEFS. finance

Banking system gets high marks

David Mesa/LAPRENSA

high rating:A report by a rating service did not find any major problems in Panama’s banking system.1054800

A comprehensive review of Panama's banking sector has found few problems and very little for investors to be concerned about.

A recent law made it mandatory for banks to receive a rating from an accredited agency. Most of Panama's 94 banks selected Fitch Ratings to do their review.

A brief report from Fitch indicates that the system has strengths and weaknesses, but overall it is very stable.

Banco General, with assets listed at close to $8 billion, was the only locally-based institution to receive an investment grade rating. That rating was based on factors such as the bank's market position, the quality of its assets and its potential for revenue growth, among other factors.

The remaining locally-based institutions received ratings of “stable.”

The report highlighted some improvements that need to be made. For example, the report recommended that Global Bank, which received high marks in several other areas, needs to diversity its income and improve its declining margins.