IMF Staff Country Reports

Panama: Financial Sector Assessment Program - Technical Note on Financial Safety Net, Resolution, and Crisis Management

Publication Date:

July 19, 2024

Electronic Access:

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Summary:

Key institutional pillars of a financial safety net have not been established in Panama. While state-owned banks benefit from an explicit government guarantee, Panama does not possess a deposit insurance framework, lender-of-last resort (LOLR) or emergency liquidity assistance (ELA)mechanism to preserve financial stability. Panama, as a fully dollarized economy with no central bank, faces constraints on its development of key components of the financial safety net which will need to be overcome.

Series:

Country Report No. 2024/235

Subject:

Bank legislation Bank liquidation Bank resolution Bank resolution framework Commercial banks Crisis management Crisis resolution Deposit insurance Financial crises Financial institutions Financial regulation and supervision Financial safety nets Financial sector policy and analysis Financial sector stability

Frequency:

regular