Banking value added contracted by 0.1% from January to September of 2009 because lower profits than previous year. Assets of National Banking System grew by only 0.2% from January to October. National Banking System profits remain substantially positive, unlike what happened with U.S. and Europe banks. From January to October of 2009, profits were 25.5% below previous year. Panama Economy Insight estimates that banking value added contracted by 1.7% in 2009; also expects to contract another 1.7% in 2010, because lower profits.
Banks assumed lower risks, which reflected in negative growth rates for new loans in 2009. Banks sacrificed profits and restricted the new credits so to maintain high liquidity to offset the global downturn. The Panama Banking System remains the most strong in the region and it has faced the global downturn without any problem. [read more...]
Source: based on information from www.panamaeconomyinsight.com.pa.
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