Panama: Financial Sector Assessment Program - Technical Note on Macroprudential Framework and Policies
IMF Staff Country Reports, July 19, 2024
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Bibliographic details
- Published: July 19, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400284922.002
Summary and key findings
- The paper presents a technical note on Macroprudential Framework and Policies in Panama.
- The institutional framework for macroprudential policy in Panama broadly meets the principles of good design, in particular for the banking sector, but needs to be further operationalized.
- The quality of design and implementation of macroprudential policies will ultimately depend on a number of factors, including the quality of available data.
- The macroprudential framework could be further improved in several areas.
- The report recommends to expand the macroprudential policy toolkit with tools to contain excessive leverage and systemic risks in the corporate sector.
- The Superintendency of Banks of Panama has made important progress on its public communication on macroprudential policy and has produced an internal draft macroprudential policy strategy document.
- The SBP is encouraged to continue improving the draft macroprudential policy strategy document and publish it within the planned timeframe, by end-2023.
- An information and data sharing mechanism has been established across supervisory agencies.
Institutional assessment and implementation gaps
- Institutional framework: broadly meets principles of good design for macroprudential policy, especially for the banking sector.
- Operationalization: needs further work to translate framework design into operational policies.
- Data dependence: quality of available data is a key determinant of the effectiveness of design and implementation.
Policy recommendations and toolbox enhancements
- Expand macroprudential toolkit:
- Add tools to contain excessive leverage in the corporate sector.
- Add tools to address systemic risks originating in the corporate sector.
- Public communication and strategy:
- Continue improving the SBP internal draft macroprudential policy strategy document.
- Publish the improved strategy document within the planned timeframe, by end-2023.
- Coordination and information sharing:
- Maintain and strengthen the established information and data sharing mechanism across supervisory agencies.
Thematic coverage and subjects
- Covered subjects include: Countercyclical capital buffers; Financial institutions; Financial regulation and supervision; Financial sector policy and analysis; Financial sector stability; Loans; Macroprudential policy; Macroprudential policy instruments.
International Monetary Fund. Panama: Financial Sector Assessment Program - Technical Note on Macroprudential Framework and Policies.
Content in this bundle
- Executive Summary