There are several factors working in favor of Panama banks attracting such a significant increase in capital. Much of it is probably a pull out of investments and into cash as the economy continues to worsen. Also Panama has still not signed on to information exchange with the OECD and Panama banks are a lot safer for peoples of Latin countries with leftist rulers.
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Even in crisis, Panama is an attractive place for foreigners. Abstractions or private foreign deposits recorded a balance of 14 thousand 996 million dollars by the end of August this year, an increase of 25% compared to the same period of 2008.
This substantial increase, but surprised analysts, according to bankers is the sign that confidence is returning and that markets have stabilized.
Panama also is benefiting from being the only country in the region which retains its growing economy. 70% of these deposits comes from Latin America, especially Venezuela and Ecuador, two countries with greater instability in the continent. Financial integration of the system allows greater access to external funds.
