CIRCULAR NO. 323, March 13, 2002
LIMITS ON INVESTMENTS IN THE EQUITIES OF FINANCIAL ALLIED UNDERTAKINGS
approved the following amendments to Section X378 of the Manual of
Regulations for Banks pursuant to Sections 25, 28 and 31 of Republic Act
No. 8791.
“SECTION X378. Limits on Investment in the Equities of Financial Allied Undertakings.
— The equity investment of a bank in a single financial allied
undertaking shall be within the following ratios in relation to its
total subscribed capital stock and to the total voting stock of the
allied undertaking:
|
ACTIVITIES |
|
INVESTOR |
|
|
|
|
|
UB |
KB |
TB |
RB |
COOP |
|
|
Publicly |
Not |
Publicly |
Not |
|
|
|
-listed |
Listed |
-listed |
Listed |
|
Allied enterprises
Financial Allied
Undertakings
|
Universal Banks |
100% |
49% |
100% |
49% |
49% |
49% |
49% |
|
Commercial Banks |
100% |
49% |
100% |
49% |
49% |
49% |
49% |
|
Thrift Banks |
100% |
100% |
49% |
49% |
49% |
|
|
|
Rural Banks |
100% |
100% |
49% |
49% |
100% |
|
|
|
Coo Banks |
NA |
NA |
NA |
NA |
30% |
|
|
|
Insurance companies |
100% |
NA |
NA |
NA |
49% |
|
|
|
VCCs |
60% |
60% |
60% |
49% |
49% |
|
|
|
Others |
100% |
49% |
40% |
40% |
40% |
|
|
To promote competitive conditions, the
Monetary Board may further limit the equity investments in quasi-banks
of universal and commercial banks to forty percent (40%).
A publicly listed UB or KB may own up to one
hundred percent (100%) of the voting stock of only one other UB or KB.
Otherwise, it shall be limited to a minority holding.
The existing investment of a bank in another
bank under R.A. No. 7721 shall be governed by Sec. X121 insofar as it is
consistent with Republic Act No. 8791.
All Circulars previously issued which are inconsistent herewith are hereby superseded.
This Circular shall take effect immediately.
Adopted: 13 March 2002
(SGD.) RAFAEL B. BUENAVENTURA
Governor