Strengthening of Financial Institutions and Infrastructure in Panama

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This technical cooperation seeks to strengthen Panama as a reference International Financial Center by improving its regulatory and supervisory architecture and its compensation and settlement infrastructure. The improvement of the regulatory architecture requires moving towards a regulatory structure of greater integration more adapted to the particularities of the financial system in Panama, as well as to the challenges of the new products and technologies existing in the sector and that blur traditional regulatory boundaries. The compensation and settlement system in Panama has to be modernized, as it still does not compensate and settle in real time and is dependent on the United States. This makes it inefficient and highly vulnerable to systemic liquidity crises or phenomena such as De-risking. For this reason, the country must advance in the regulatory, institutional and operational framework to put into operation a modern compensation and settlement system.