PANAMA’S Banking Association has moved to scotch what it calls"malicious rumors published on social networks" about the stability of the financial system.

An Association press release, on Monday, May 9,  stressed that the takeover of Balboa Bank & Trust Corporationm owned byt the Waked family,  is an "isolated" event that does not put the rest of the industry at risk.

"The activity of the banking sector is very sensitive to rumors and speculation that may affect the reputation and confidence about its activity," the association said.

It called the takeover of Balboa Bank & Trust  an isolated fact that is a preventive measure to protect and safeguard the interests of customers, depositors, and investors" and that the particular situation of a bank does not represent in any way the general condition of the national banking system.

Francisco Escoffery has been appointed to oversee the bank's activities over the next 30 days, which can be extended for an additional month.