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

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  • International Monetary Fund

Abstract

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.

Suggested Citation

  • International Monetary Fund, 2024. "Panama: Financial Sector Assessment Program - Technical Note on Financial Safety Net, Resolution, and Crisis Management," IMF Staff Country Reports 2024/235, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2024/235
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