The statistics of the Superintendency of Banks of Panama reveal that the interest rate of the Panamanian banking on personal loans to 12 months, showed a difference of 123 base points between March 2010 and 2014, going from 9,86% to 8,63%, which has enabled the consumer portfolio has grown by 12,26% in March 2015 compared to March 2014.
* At the end of the first quarter of 2015, the National Banking System (SBN), recorded a consumer loan portfolio of U.S.$ 8,149.5 million, compared to U.S.$ 7,259.2 million in the same month of 2014, representing an increase of 12,26%.
* According to the loan portfolio for the industry, the National Banking System recorded U.S.$ 2,238.4 million, an increase of 30,01% compared to U.S.$ 1,721.7 million in the same month of 2014.
* The total loan portfolio of the National Banking System, amounted to U.S.$ 41,656.6 million in March 2015, an increase of 10,67% compared with U.S.$ 37,640.2 million in the same month last year.
Panamanians continue to benefit from the diversity of sources of financing the banking and financial center that Panama offers. While it is true that Panamanian families are characterized by record high levels of debt (primarily credit cards), the competition to attract new customers in the personal loans segment is strong. So, to attract them, there are banks that offer incentives, such as the drawing of a house for those who are encouraged to apply at a given period of time.
According to information published by Capital Financiero website, the interest rate on personal loans to 12 months of Panamanian Banking (Between March 2010 and 2014) shows a difference of 123 base points, going from 9,86% to 8,63%, according to statistics revealed by the Superintendency of Banks of Panama (SBP).
The interest rate for personal financing from 12-60 months (five years), showed a difference of two base points to stand in 9,27% to 9,07% between March 2014 and 2015. Meanwhile, the rate of interest for personal loans of foreign banks to 12 months, increased from 10,60% to 9,63% between March 2010 and March 2015. While terms ranging from one to five years in March 2010, was applied an interest of 8,77% and March 2015 was set at 8,27%.
Ernesto Bazan, economist and partner at consulting firm BDO, affirms that levels of interest rates in Panama, are due to two main factors: strong competition and also, banks have increased lending conditions, costs that are not displayed in the prevailing interest rate. In turn, he considered that the expected increase in interest rates by the Federal Reserve of the United States, will not represent further increases in interest rates of banks established in Panama.
Meanwhile, interest on loans to the commercial sector within 12 months of the Panamanian Banking, are from 8,20% to 7,82% between March 2010 and 2014. And the loans agreed one to five years, in March 2010 was applied an interest rate of 8,15% and the same month of 2015, was set at 7,36%.
The interest rate of foreign banks for financing to 12 months the commercial sector in March 2010 was at 7,28% and in March 2015 stood at 7,55%. The loans agreed one to five years in March 2010 received a rate of 6,71% and the same month of 2015 amounted to 8,13%.