373 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 the total subscribed capital stock and to the total voting stock of the allied undertaking:
| ACTIVITIES |
INVESTOR |
| Allied Enterprises |
UB |
KB |
TB |
RB |
Coop Banks |
| Financial Allied Undertaking |
Publicly- listed |
Not listed |
Publicly- listed |
Not listed |
|
|
|
| UBs |
100% |
49% |
100% |
49% |
49% |
49% |
49% |
| KBs |
100 |
49 |
100 |
49 |
49 |
49 |
49 |
| TBs |
100 |
100 |
49 |
49 |
49 |
| RBs |
100 |
100 |
49 |
49 |
100 |
| Coop Banks |
NA |
NA |
NA |
NA |
30 |
| Insurance Companies |
100 |
NA |
NA |
NA |
NA |
| VCCs |
60 |
60 |
60 |
49 |
49 |
| Trust Corporation |
100 |
49 |
40 |
40 |
40 |
| Others |
100 |
49 |
40 |
40 |
40 |
To promote competitive conditions, the Monetary Board may further limit the equity investments in QBs of UBs and KBs to forty percent (40%).
A publicly-listed UB or KB may own up to 100% of the voting stock of only one (1) other UB or KB. Otherwise, it shall be limited to a minority holding.
The guidelines in determining compliance with ceilings on equity investments in financial allied undertakings are shown in Appendix 83.
(Circular No. 858 dated 21 November 2014)
