The Panamian government has reported a strong first-half for its banking industry amid efforts to strengthen its financial transparency‎ framework.

Assets held by Panama's banking system rose by more than $4 billion year-on-year – or 4.6 per cent – to $99.6 billion in the first half of 2016, the Panamanian Government said. The period saw the country embroiled in a major tax scandal.

In April, 11.5 million leaked documents – dubbed the "Panama Papers" – from Panamanian law firm Mossack Fonseca were provided to the Washington DC-based International Consortium of Investigative Journalists with information on more than 214,488 offshore entities. The leak threw into the spotlight issues such as the use and misuse of offshore structures and the need for legitimate client confidentiality. For an editorial comment on the scandal, click here.

Panama saw a 7.2 per cent increase in its loan portfolio and a 6.3 per cent growth in its securities market over the first half of the year amid efforts to boost transparency in the financial services industry.

As the government moved forward with increased regulations for doubtful accounts and with the adoption of international standards, profit in the national banking system fell 2.4 per cent to around $615 million as at the end of June.

Raul Moreira, director of economic and social analysis of the Ministry of Economy and Finance of Panama, said deposits totalled almost $73.4 billion at the end of June, up 5.3 per cent from a year earlier.