Banking
in Panama
When
any sophisticated investor thinks of Panama,
the first thing that comes to mind is the country’s
well-developed international banking center.
With an increase in banking activity Panama
is now considered the financial capital of Latin
America. Around 130 banks take advantage of
the country's favorable bank regulations and
confidentiality, free currency convertibility
and movement, use of the U.S. dollar as legal
tender, favorable fiscal legislation, good international
communications, a well-trained workforce, stable
economic, political and social environments,
and the high degree of utilization of modern
technology. In 1959 Law 18 provided numbered
bank accounts.
A
banking decree in 1970 increased the number
of banks operating in the country. Banks may
be licensed under three conditions: Those doing
business only in Panama; Those that are offshore;
those that have banking activity within or outside
of Panama.
Of the 130 banks operating in the country, 62
operate under a general license, which enables
them to do domestic and international business;
30 under international license, limited to off-shore
business and 17 are representative offices.
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