PANAMA: BANKS MUST CLEARLY DISCLOSE HOW MUCH A LOAN WILL REALLY COST

Agreement No. 6-2026 of the Superintendency of Banks of Panama

Starting October 22, 2026, banking institutions must provide customers, free of charge, with a detailed loan amortization and payment schedule for approved loans, allowing them to know from the outset how much will be paid over the entire life of the credit.

The new regulation strengthens the principle of banking transparency and aims to ensure that customers know not only how much money they receive, but also how much they will ultimately pay to the bank.

What must the schedule contain?

The document must include, among other items:

• Disbursed amount or loan principal.
• Total loan term and payment frequency.
• Applicable interest rate, its modality, effective interest rate, and calculation method.
• Amount of each installment, with a breakdown between principal, interest, insurance, commissions, and other recurring charges associated with the credit.
• Principal balance before and after each payment.
• Date or number of each installment.
• Total cost of credit, defined as the difference between the approved credit amount and the total amount the customer must pay.

In simple terms, the customer will be able to know how much they owe before each payment, how much will be applied to principal, how much corresponds to interest and charges, and how much they will still owe after making the payment.

How much will the customer end up paying?

One of the most important aspects of this regulation is that consumers will be able to know from the start the difference between:

The money received from the bank
vs.
The money ultimately paid to the bank upon full payoff of the loan.

This information is particularly relevant for long-term loans, where interest, insurance, commissions, and other charges can represent a significant difference compared to the principal originally received.

Changes in loan terms and conditions

When a modification to the interest rate or another contractual condition results in changes to payments, the bank must notify the customer in advance and provide them, at no cost, with a new schedule reflecting the updated installments and terms.

Mortgage loans and renewal fees

For mortgage loans that include a renewal fee, the bank must notify the customer of the charge at least two months in advance.

The notice must specify:

• The amount of the fee.
• How it was calculated.
• The date on which it will be charged.
• The available payment options.
• Insurance

Likewise, the banking institution must notify the customer when the insurance policy securing the loan has expired or has been canceled, retaining proof of receipt of such communications.

A new stage in banking transparency

Agreement No. 6-2026 of the Superintendency of Banks of Panama represents an important step toward a more transparent relationship between financial institutions and their clients.

The principle is simple:
Before taking on a debt, the customer has the right to know how much they receive, how much they pay, and how much they will ultimately pay.

The new obligations will take effect on October 22, 2026.

MOLINA & CO.
molinaco.com
Attorneys at Law | Banking, Corporate & Commercial Law | Litigation | Government Relations
More information: Agreement No. 6-2026 / Reference information