[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109109-en":3,"doc-seo-109109-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},109109,1099513958762,"Logic","https://ap-avatar.wpscdn.com/avatar/1000023916a998db790?x-image-process=image/resize,m_fixed,w_180,h_180&k=1784791008015729253",8,"Research & Report","Panama Financial Sector Assessment Program - Detailed Assessment of Observance - Basel Core Principles for Effective Banking Supervision","Panama Financial Sector Assessment Program provides a detailed assessment of observance of the Basel Core Principles for Effective Banking Supervision. Prepared through an IMF-World Bank FSAP mission in Panama in early 2023, the report evaluates how banking supervision is organized and operates across preconditions for effective supervision, supervisory responsibilities and powers, licensing and ownership changes, supervisory approaches, corrective and sanctioning tools, and consolidated supervision. It also reviews corporate governance and internal audit, risk management processes, capital adequacy, credit risk and provisioning, disclosures and transparency, and risks related to abuse of financial services, followed by recommended actions and authorities’ responses.","November 2023  \nPublic Disc losure Authorized  \nPub lic Disc losure Authorized  \nPANAMA  \nFINANCIAL SECTOR ASSESSMENT PROGRAM  \nDETAILED ASSESSMENT OF OBSERVANCE  \nBASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION  \nPrepared By  \nMonetary and Capital Markets Department, International Monetary Fund, and Financial and Private Sector Development, World Bank  \nThis Report was prepared in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP) mission in Panama during January 17-February 6, 2023, and overseen by the Monetary and Capital Markets Department, International Monetary Fund, and the Financial and Private Sector Development Vice Presidency, World Bank. Further information on the FSAP program can be found at [http://www.imf.org/external/np/fsap/fssa.aspx](http://www.imf.org/external/np/fsap/fssa.aspx), and [www.worldbank.org/fasp](www.worldbank.org/fasp).  \nCONTENTS  \nGLOSSARY _________________________________________________________________________________________ 4  \nEXECUTIVE SUMMARY ______________________________________________________________________________ 6  \nINTRODUCTION ____________________________________________________________________________________ 9  \nINSTITUTIONAL AND MARKET STRUCTURE—OVERVIEW_______________________________________________ 9  \nA. Institutional Setting___________________________________________________________________________ 10  \nB. Market Structure______________________________________________________________________________ 12  \nPRECONDITIONS FOR EFFECTIVE BANKING SUPERVISION _____________________________________________ 14  \nA. Sound and Sustainable Macroeconomic and Financial Sector Policies ________________________ 14  \nB. Well-Developed Public Infrastructure _________________________________________________________ 14  \nC. Framework for Crisis Management, Recovery and Resolution_________________________________ 14  \nD. Appropriate Level of Systemic Protection (or Public Safety Net) ______________________________ 15  \nE. Effective Market Discipline ____________________________________________________________________ 15  \nMAIN FINDINGS __________________________________________________________________________________ 16  \nA. Responsibilities, Objectives, Powers, Independence (CP 1–2) _________________________________ 16  \nB. Supervisory Cooperation and Cross Border Supervision (CP 3, 12) ____________________________ 16  \nC. Licensing, Changes in Control, and Acquisitions (CP 4–7) _____________________________________ 16  \nD. Supervisory Approach (CP 8–10) ______________________________________________________________ 17  \nE. Corrective and Sanctioning Powers of Supervisors (CP 11) ____________________________________ 18  \nF. Consolidated Supervision (CP 12) _____________________________________________________________ 18  \nG. Corporate Governance and Internal Audit (CP 14, 26) ________________________________________ 18  \nH. Risk Management Process (CP 15) ____________________________________________________________ 19  \nI. Capital (CP 16) _________________________________________________________________________________ 19  \nJ. Credit Risk and Problems Assets, Provisions and Reserves (CP 17–18) _________________________ 20  \nK. Risk Management (CP 19–25) _________________________________________________________________ 20  \nL. Disclosures and Transparency (CP 27–28) _____________________________________________________ 22  \nM. Abuse of Financial Services (CP 29) ___________________________________________________________ 22  \nDETAILED ASSESSMENT____________________________________________________________________________23  \nA. Supervisory Powers, Responsibilities, and Functions __________________________________________ 23  \nC. Prudential regulations and requirements _____________________________________________________ 71  \nRECOMMENDED ACTIONS AND AUTHORITIES’ COMMENTS _________________________________________ 184  \nA. Recommended Actions _______________","cbCaig9T2gjdYnPv","https://ap.wps.com/l/cbCaig9T2gjdYnPv","pdf",1283049,4,1,190,"English","en",105,"# Executive Summary\n# Introduction\n## Institutional and Market Structure—Overview\n## Preconditions for Effective Banking Supervision\n# Main Findings\n## Responsibilities, Objectives, Powers, Independence (CP 1–2)\n## Supervisory Cooperation and Cross Border Supervision (CP 3, 12)\n## Licensing, Changes in Control, and Acquisitions (CP 4–7)\n## Supervisory Approach (CP 8–10)\n## Corrective and Sanctioning Powers of Supervisors (CP 11)\n## Consolidated Supervision (CP 12)\n## Corporate Governance and Internal Audit (CP 14, 26)\n## Risk Management Process (CP 15)\n## Capital (CP 16)\n## Credit Risk and Problems Assets, Provisions and Reserves (CP 17–18)\n## Risk Management (CP 19–25)\n## Disclosures and Transparency (CP 27–28)\n## Abuse of Financial Services (CP 29)\n# Detailed Assessment\n# Recommended Actions and Authorities’ Comments","[{\"question\":\"What is the purpose of the Panama Financial Sector Assessment Program report?\",\"answer\":\"It assesses Panama’s observance of the Basel Core Principles for effective banking supervision as part of a joint IMF-World Bank FSAP mission.\"},{\"question\":\"Which supervision areas does the report evaluate in its main findings?\",\"answer\":\"It covers responsibilities and independence, supervisory cooperation (including cross-border supervision), licensing and ownership changes, supervisory approach, corrective and sanctioning powers, consolidated supervision, governance and internal audit, risk management, capital, credit risk and provisioning, disclosures and transparency, and abuse of financial services.\"},{\"question\":\"How does the report end and what follows after the detailed assessment?\",\"answer\":\"After the detailed assessment, it presents recommended actions and provides the authorities’ response to the 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is the purpose of the Panama Financial Sector Assessment Program report?","Question",{"text":75,"@type":76},"It assesses Panama’s observance of the Basel Core Principles for effective banking supervision as part of a joint IMF-World Bank FSAP mission.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Which supervision areas does the report evaluate in its main findings?",{"text":80,"@type":76},"It covers responsibilities and independence, supervisory cooperation (including cross-border supervision), licensing and ownership changes, supervisory approach, corrective and sanctioning powers, consolidated supervision, governance and internal audit, risk management, capital, credit risk and provisioning, disclosures and transparency, and abuse of financial services.",{"name":82,"@type":73,"acceptedAnswer":83},"How does the report end and what follows after the detailed assessment?",{"text":84,"@type":76},"After the detailed assessment, it presents recommended actions and provides the 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