VOTING STOCKS IN A DOMESTIC BANK FOREIGN-OWNED VOTING STOCKS IN A BANK

Pursuant to Monetary Board Resolution No. 1233 dated July 21, 2000,
the following rules and regulations are hereby issued to implement
Section 11 of Republic Act No. 8791, “The General Banking Law of 2000”.

SECTION 1.        Foreign individuals and non-bank
corporations may own or control up to forty percent (40%) of the voting
stock of a domestic bank: Provided, That the aggregate foreign
owned voting stocks owned by foreign individuals and non-bank
corporations in a domestic bank shall not exceed forty percent (40%) of
the outstanding voting stock of the bank. The percentage of
foreign-owned voting stocks in a bank shall be determined by the
citizenship of the individual stockholders in that bank.

SECTION 2.        A Filipino individual and a domestic
non-bank corporation may each own up to forty percent (40%) of the
voting stock of a domestic bank. There shall be no aggregate ceiling on
the ownership by such individuals and corporations in a domestic bank.

SECTION 3.        The citizenship of the corporation
which is a stockholder of a bank shall follow the citizenship of the
controlling stockholders of the corporation, irrespective of the place
of incorporation. For purposes hereof, the term “controlling
stockholders” shall refer to individuals holding more than fifty percent
(50%) of the voting stock of the corporate stockholder of the bank.

SECTION 4.        The right of Philippine corporations,
however, under Section 8 of Republic Act No. 7721 (Act Liberalizing the
Entry of Foreign Banks), to wit:

“x x x Any right, privilege or incentive granted to foreign
banks or their subsidiaries or affiliates under this Act, shall be
equally enjoyed by and extended under the same conditions to Philippine
banks. Philippine corporations whose shares of stocks are listed in the
Philippine Stock Exchange or are of long standing for at least ten (10)
years shall have the right to acquire, purchase or own up to sixty
percent (60%) of the voting stock of a domestic bank.”

shall continue to be in force and effect.

SECTION 5.       This circular supersedes the provisions
of Subsection X126.1 of the Manual of Regulations for Banks insofar as
inconsistent herewith.

This circular shall take effect immediately.

Adopted: 15 August 2000

(SGD.) RAFAEL B. BUENAVENTURA
Governor