In this article, we’re exploring whether or not Panama has a central bank. We’ll dive into who is responsible for regulating, managing, and overseeing all financial institutions and banking activities, including the costs of banking in Panama.
This article is part of our free series on Panama banking costs. You can access this series right now by using the link above.
In addition to detailed account opening guides, this free series on Panama banking also discusses the largest banks in Panama, Panama opening requirements, the costs of banking in Panama, and much more. Use the link above to start exploring all of your free Panama banking content right now.
Alternatively, use the table of contents to continue exploring more information on how Panama’s banking sector is regulated.
Table of Contents
- Does Panama Have a Central Bank?
- Frequently Asked Panama Banking Questions
- Do You Want to Open a Panama Bank Account?
Does Panama Have a Central Bank?
No, Panama does not have a central bank. The country’s financial system is regulated and supervised by the Superintendency of Banks of Panama. This regulator oversees all financial institutions and banking groups licensed to operate in Panama.
The Superintendency of Banks of Panama (SBP) is the primary regulatory body overseeing the entire financial sector in Panama. The SBP works closely with the National Bank of Panama and the Panamanian Banking Authority.
The National Bank of Panama is responsible for managing monetary policies, including currency issuance. The Panamanian Banking Authority is responsible for overseeing all banking activities in the country. Collectively, these three regulatory bodies work together to regulate and monitor all financial institutions in Panama.
What Currency Does Panama Use?
Panama has a dual-currency system. The country’s official currency is the Panamanian Balboa (PAB), however, the United States Dollar (USD) is frequently used. The Panamanian Balboa has a fixed 1:1 exchange rate with the United States Dollar.
It’s important to note that Balboas are only available in coinage. The vast majority of transactions taking place, both in person and online in Panama, are completed in USD.
Before applying to open an account, it’s important to know which banks offer the currency you need and understand what the account setup fee and minimum deposit are to open a bank account in Panama.
If you are interested in learning more about banking in Panama, don’t forget to visit our comprehensive guide on Banking in Panama, available in the link above.
Alternatively, if you would like to explore all of your offshore banking options, download our free guide and compare Panama to some of the top banking jurisdictions available.
Do You Want to Explore All Your Offshore Banking Options?
Frequently Asked Panama Banking Questions
Below are a few of the most common questions we receive from people exploring if Panama has a central bank. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Why Does Panama Not Have a Central Bank?
Panama does not have a central bank since it uses the US Dollar as its official currency. The National Bank of Panama and the Panamanian Banking Authority instead collectively serve to manage monetary policies and regulate the country’s financial system.
Does Panama Have a Federal Reserve?
No, Panama does not have a federal reserve. The country’s financial system is not regulated by a central bank, instead, it is regulated by the National Bank of Panama and the Panamanian Banking Authority.
What Countries Have a Centralized Banking System?
Countries that have a centralized banking system include the United States (Federal Reserve), the European Union (European Central Bank), China (People’s Bank of China), Canada (Bank of Canada), Switzerland (Swiss National Bank), Singapore (Monetary Authority of Singapore), and many other countries. These central banks oversee and regulate currency issuance, monetary policies, and financial stability.
Do You Want to Open a Panama Bank Account?
If so, you can access GlobalBanks IQ and start the process of applying in Panama in a few clicks.
GlobalBanks IQ is our flagship international bank account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open bank accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing bank account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
To learn more about opening accounts with GlobalBanks IQ, use the link in the top menu. Or, contact us directly with any questions!
