Banistmo is an entity domiciled in Panama. It began operating in 1973 and was acquired in October 2013 by Bancolombia S.A., a financial entity that is Colombian in origin and has a net worth of US$8 billion, making it the eighth largest private bank in Latin America. Banistmo is a full-service bank regulated by Panama’s banking regulator (Superintendencia de Bancos de Panamá). It provides a wide variety of financial services both directly and through its affiliates, mainly to institutions and natural persons. In addition to consumer banking and services to corporate clients, Banistmo provides financial leasing, trust asset management and services like payment, registry, brokerage, and trading of securities.
Banistmo is the second largest private bank in Panama. It had a market share of 12 percent as of March 2015 by deposits and a 14 percent market share by loan portfolio. It is a diversified bank, with 17 percent of its portfolio in the consumer sector, 27 percent in residential mortgage lending, and 56 percent in corporate lending. Banistmo has 455,000 customers, 55 branches, and more than 300 ATMs. Micro, small, and medium sized enterprises account for 63% of the total number of enterprises financed by the Bank. The rest are large corporate clients.
The objective of this financing is to support small and medium-sized companies, in Panama mainly but also in Barbados, Belize, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Nicaragua, Peru, Suriname, The Bahamas, and Trinidad and Tobago, where the Bank has an opportunity to grow through credit transactions to finance working capital or the purchase of fixed assets.
Environmental and Labor Issues:
This is a category FI-2 project according to the IIC’s Environmental and Social Sustainability Policy because of the medium risk of the subprojects in the financial intermediary’s current or future portfolio. In order for Banistmo to gain a better understanding of the IIC’s environmental requirements, a representative of the Bank will attend an IIC or IIC-approved training session on this issue designed for financial entities. Each subproject financed with IIC funds will be subject to an environmental review and must comply with national environmental and labor standards and IIC environmental guidelines. The Bank will be required to submit annual environmental reports to the IIC detailing the progress made and improvements in the adoption of the environmental management system, as well as the problems identified during the implementation of that system.