Panama Banks Merge

Panamanian banks Banco General and Banco Continental have said they are to merge and create a new financial entity – BG Financial Group – with the banks having a 61:39 ownership, respectively. The new local giant, which will be born from Banco General absorbing Banco Continental, will become one of the largest financial groups in the region. With more than $7 billion in assets, it will have the muscle to take on the large foreign players who are piling into Central America. The board of BG Financial will comprise eight directors from Banco General and four from Banco Continental. Last year, HSBC paid $1.7 billion to buy local Grupo Banistmo, the largest bank in the region.