finance

Bank manager pledges assistance

The government’s bank has pledged to help other institutions, but none appear to need it.

la prensa

National Bank of Panama1110418

The National Bank of Panama is willing to help the country's private banks if they need it, but Manager Juan De Dianous does not anticipate that scenario becoming a reality.

De Dianous was one of the industry representatives who spoke at a conference yesterday on the global economic crisis organized by the business school Incae.

The manager emphasized the strengths of the Panamanian banking system and the good performance of the state-owned bank he runs, which has a liquidity index of 73 percent, or $2 billion, even though guidelines only call for a 30 percent rate.

The banker advised his colleagues to maintain a cautious credit policy, aimed at mitigating risks that may arise. But he expressed confidence that no local institutions will need to be bailed out of financial trouble because of bad loans.

While the country's banking industry is strong, the effects of the crisis are being felt here in respect to the availability of credit.

“There are many banks canceling international credit lines because there are no funds,” said Incae professor Eduardo Luis Montiel, who warned that countries will be affected by the global financial crisis in different ways.

The professor praised the Panamanian government and the banking system for how it has handled the crisis so far, but he said the country will soon begin to see declines in international trade and tourism, two key activities for the Panamanian economy. “It is a time for caution and patience,” he said.