Subject
Chinese banks in Panama.
Significance
The world’s largest bank, the Industrial and Commercial Bank of China (ICBC), is likely to open its doors in Panama this year as part of a new era of cooperation between the countries following the Panamanian government’s decision last year to abandon its long-standing support of Taiwan and begin diplomatic relations with China.
Impacts
Chinese banks will be keen to tap into the financing opportunities offered by Panama’s investment projects.
The Panamanian government will encourage these banks to participate in public tenders for infrastructure projects.
Despite recent improvements, Panama’s banking sector will still expose incomers to considerable reputational risk.
Assessing the strategic alliance between Industrial and Commercial Bank of China and Standard Bank