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    UB V KB

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    Jo-ana Desuyo
    The document outlines equity investment limits for universal banks, commercial banks, and quasi-banks in allied and non-allied enterprises. Universal banks can invest up to 50% of their net worth in allied enterprises and up to 25% of their net worth in any single non-allied enterprise. Commercial banks are limited to 35% of their net worth in allied enterprises and cannot invest in non-allied enterprises. Both universal and commercial banks can acquire up to 100% equity in a single non-financial allied enterprise, but the investment must remain below 50% of the enterprise's voting shares.

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    UB V KB

    Uploaded by

    Jo-ana Desuyo
    160 views3 pages
    The document outlines equity investment limits for universal banks, commercial banks, and quasi-banks in allied and non-allied enterprises. Universal banks can invest up to 50% of their net worth in allied enterprises and up to 25% of their net worth in any single non-allied enterprise. Commercial banks are limited to 35% of their net worth in allied enterprises and cannot invest in non-allied enterprises. Both universal and commercial banks can acquire up to 100% equity in a single non-financial allied enterprise, but the investment must remain below 50% of the enterprise's voting shares.

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    The document outlines equity investment limits for universal banks, commercial banks, and quasi-banks in allied and non-allied enterprises. Universal banks can invest up to 50% of their net worth in allied enterprises and up to 25% of their net worth in any single non-allied enterprise. Commercial banks are limited to 35% of their net worth in allied enterprises and cannot invest in non-allied enterprises. Both universal and commercial banks can acquire up to 100% equity in a single non-financial allied enterprise, but the investment must remain below 50% of the enterprise's voting shares.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    160 views3 pages

    UB V KB

    Uploaded by

    Jo-ana Desuyo
    The document outlines equity investment limits for universal banks, commercial banks, and quasi-banks in allied and non-allied enterprises. Universal banks can invest up to 50% of their net worth in allied enterprises and up to 25% of their net worth in any single non-allied enterprise. Commercial banks are limited to 35% of their net worth in allied enterprises and cannot invest in non-allied enterprises. Both universal and commercial banks can acquire up to 100% equity in a single non-financial allied enterprise, but the investment must remain below 50% of the enterprise's voting shares.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    POINT OF DISTINCTION

    Total investment in allied enterprises Total investment in non-allied enterprises Equity investment in any one enterprise Equity investment in financial allied enterprise: TB, RB or any financial allied enterprise (Sec. 25) A publicly-listed bank may own up to 100% of the voting stock of only one other UB / KB (Sec. 25) Equity investment in non-financial allied enterprise Equity investment in a single non-allied enterprise Equity investment in Quasi-Banks

    UNIVERSAL BANK (Sec. 24-28)


    50% of net worth 50% of net worth

    COMMERCIAL BANK (Sec. 30-32)


    35% of net worth N/A 25% of net worth (Allied only)

    25% of net worth

    100% of equity 100% of equity In other financial allied enterprises, investment shall remain a minority holding (Sec. 31).

    100% of equity Shall not exceed 35% of the total equity in that enterprise nor shall it exceed 35% of the voting stock in that enterprise 40%

    100% of equity

    N/A

    40%

    Allied Enterprises - those entities which enhance or complement banking

    Non-Financial Allied Enterprise - pertains to activities that do not involve money matters (such as warehousing, safety deposit boxes). Financial Allied Undertakings With prior BSP approval, banks may invest in equities of the following financial allied undertakings, subject to limitations: a. Leasing companies including leasing of stalls and spaces in a commercial establishment: Provided, That bank investment in/acquisition of shares of such leasing company shall be limited/ applicable only in cases of conversion of outstanding loan obligations into equity; b. Banks; c. IHs; d. Financing companies; e. Credit card companies; f. FIs catering to small and medium scale industries including venture capital corporation (VCC). g. Companies engaged in stock brokerage/securities dealership; and h. Companies engaged in foreign exchange dealership/brokerage. In addition, UBs may invest in the following as financial allied undertakings: (1) Insurance companies; and (2) Holding company: Provided, That the investments of such holding company are confined to the equities of allied undertakings and/or non-allied undertakings of UBs allowed under BSP regulations. The Monetary Board may declare such other activities as financial allied undertakings of banks. The determination of whether the corporation is engaged in a financial allied undertaking shall be based on its primary purpose as stated in its articles of incorporation and the volume of its principal business. Non-Financial Allied Undertakings A bank may acquire up to 100% of the equity of a non-financial allied undertaking: Provided, That the equity investment of a TB/RB in any single enterprise shall remain less than fifty percent (50%) of the voting shares in that enterprise: Provided, further, That prior Monetary Board approval is required if the investment

    is in excess of forty percent (40%) of the total voting stock of such allied undertaking. The determination of whether the corporation is engaged in a non-financial allied undertaking shall be based on the primary purpose as stated in its articles of incorporation and the volume of its principal business. UBs/KBs and TBs may invest in equities of the following non-financial allied undertakings: (1) Warehousing companies; (2) Storage companies; (3) Safe deposit box companies; (4) Companies primarily engaged in the management of mutual funds but not in the mutual funds themselves; (5) Management corporations engaged or to be engaged in an activity similar to the management of mutual funds; (6) Companies engaged in providing computer services; (7) Insurance agencies/brokerages; (8) Companies engaged in home building and home development;

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