This bank, which later became Banistmo, developed into the largest Panamanian bank in Central America.

Before the banking laws were rewritten in 1970 to make the country a money haven, Panamanian banks reported deposits of $250 million.

When United States officials recently asked Panamanian banks to search for suspicious accounts that might have been used to hide terrorists' funds, responses came quickly.

The crisis deepened March 3, when the Government acknowledged that it could no longer meet its financial obligations and ordered all Panamanian banks to close.

But he also wondered whether a Panamanian bank would provide information about deposits to the United States Government.

They are being paid partly in dollars, with the remainder in checks deposited to their accounts in Panamanian banks.

Because of the political and economic crisis here, Panamanian banks have not been allowing clients to withdraw cash for the last two months.

A small Panamanian bank pled guilty on money laundering charges after a sting operation.

And he assured the safe passage of millions of dollars of narcotics proceeds into Panamanian banks.

A dozen Panamanian banks joined the strike Tuesday, resulting in a virtual halt in financial transactions.