Deposit Insurance

Panama has NO deposit insurance. However, in case of a bank liquidation, there is an order of precedence that makes it much more likely to recover all deposits if USD 10,000 or less is maintained with the bank. Article 167 of the Panamanian banking law states the following:

ARTICLE 167. ORDER OR PRECEDENCE. With the exception of what's determined in other articles of this Law, bank obligations will be paid during liquidation in the following order:
  1. New deposits that are established during the period of reorganization.
  2. Deposits for ten thousand dollars or less. If two or more deposits in this category exist in favor of the same person, the one for the higher amount will be paid up to the sum of ten thousand dollars. This limit can be modified by the Superintendency.
  3. Labor related obligations.
  4. Obligations in favor of the Social Security System in concept of employee-employer fees of bank employees.
  5. Fiscal related obligations with the National Treasury or Municipality, as well as fees for public services provided by the state.
  6. Other deposits and obligations.
Obligations within each of the preceding categories will be paid on a prorated basis. Each category excludes that others according to the order established in this article up to where the bank assets last. Obligations recognized through arbitration or legal resolutions will be paid in the corresponding category according to it's nature and prorated basis. The order of precedence or preference established in other laws will not apply to payments of obligations from the banks.

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