Shareholders of Banco Panamá SA on May 30 will vote on a proposed merger with Banco Aliado SA, El Capital Financiero reported.

Banco Aliado, which is the fourth largest private-sector bank in Panama in terms of assets, will be the surviving entity under the proposal. Banco Panamá, meanwhile, is ninth on the list of the country's privately owned banks, the publication noted.

The combined entity will reportedly hold assets amounting to around $3.97 billion, based on mid-year 2018 fiscal accounts.

According to El Capital Financiero, the proposed merger did not surprise the local and international banking community, as analysts within rating agencies and other sectors have been predicting a wave of consolidation within Panama financial space for some time.

The deal follows Panamanian lender Global Bank Corp.'s parent company G.B. Group Corp. purchase of Banco Panameño de la Vivienda SA in late 2018 for a total cash-and-stock consideration of $202.9 million. Global Bank has since decided to absorb Banvivienda.