Panama'sbanking regulator, Superintendencia de Bancos de Panamá, said June 30 that itreceived a request from CanalBank SA for approval to absorb its subsidiary .

CanalBank would be the surviving entity of the operation, the regulator said.

Theregulator handed over control of Banco Universal to Canal Bank in Februaryafter it had earlier determined that depositors' savings were at risk due topotential weaknesses in the bank's corporate governance.

CanalBank, which is part of GrupoNASE, won a tender process to take over the bank's management andBanco Universal reportedly reopened its doors in March.