BOC set on building higher profile and economic relations in Panama

Bank of China Panama Branch is ramping up its engagement in Panama in an effort to bolster socioeconomic development in the nation of 4.5 million inhabitants on the isthmus linking Central and South America.

In 1987, BOC established a representative office in the national capital of Panama City, and launched its branch for operations there in July 1994. As the first Chinese financial institution in Central America and Caribbean market, the branch has evolved into a significant foreign bank. It holds a general banking license and has become a prominent player among Panama's mainstream banks.

BOC officials said the branch has made significant contributions to facilitating trade and economic exchanges between China and Panama, as well as enhancing cultural interactions and even promoting diplomatic relations between the two countries.

Over the past 30 years, BOC has explored ways to support Panama's economic and social development, and especially since the establishment of diplomatic relations between China and Panama in 2017, that support has increased significantly. To date, BOC has invested hundreds of millions of dollars in Panamanian government bonds, financed key projects such as the Panama Convention Center and the Generadora Gatun power plant, and extended $300 million in credit to local financial institutions like Banco Nacional Bank and Banco General. BOC also provides renminbi clearing account services, dominating nearly 100 percent of the local market.

In promoting green finance and supporting sustainable development in Latin America, the branch issued $300 million in Belt and Road sustainable development bonds in June 2024, targeting projects in Panama and the region. Additionally, it has experienced steady, coordinated and healthy growth across all business areas, with key performance indicators showing positive trends.

As a financial hub for Latin America, BOC Panama Branch has entered a new historical period of coordinated regional development. By the end of 2024, the branch had extended over $3 billion in loans across Latin America, covering more than a dozen countries including Panama, Mexico, Brazil, Ecuador, Chile, Colombia and Peru. These loans span a wide range of industries, including oil and gas, infrastructure, energy transition and agriculture.

Dedicated to advancing RMB internationalization, the Panama Branch became the first financial institution in Central America and the Caribbean to conduct RMB clearing business in 2012. In October 2023, it joined the Cross-Border Interbank Payment System, becoming the first direct participant bank in Central America and the Caribbean. By the end of 2024, the branch's cross-border RMB clearing volume reached 52.75 billion yuan ($7.33 billion), capturing 99.94 percent of the market share in Panama.

In addition to sound financial practices, the Panama Branch participates in and supports local charity and public welfare activities, fulfills social responsibilities, and tells the Chinese story well. It has invited senior officials from finance, banking and government in Panama, Costa Rica, Ecuador and Colombia to participate in the Belt and Road international financial exchange and cooperation workshop hosted by BOC, which promotes cooperation between China and Latin America.

The branch also supports local business engagement for major national events like the China Import and Export Fair and the China International Import Expo. Additionally, leveraging its role as the chair of the Chinese Chamber of Commerce in Panama, the branch has organized a series of cultural and sports activities, which not only demonstrates the good spirit of Chinese enterprises, but promotes Chinese culture and gathers Chinese strength in Panama.

This year marks the eighth anniversary of China-Panama diplomatic relations and the 31st anniversary of BOC Panama Branch. As a bridge in China-Panama trade relations, the branch, along with other Chinese enterprises, will continue to strive to create jobs, attract international investment and contribute to Panama's economic and social prosperity, the bank said.