Amendments to Subsection 1381.2, item (a) of the Manual of Regulations for Banks (MORB)

CIRCULAR NO. 438 Series of 2004

The Monetary Board, in its Resolution No. 661 dated May 6 2004, approved the following amendments to Subsection 1381.2, item (a) of the Manual of Regulations for Banks (MORB), which reads:

Subsection 1381.2, item (a) of the Manual of Regulations for Banks shall now read as follows:

Subsection 1381.2 Limits on investments in non-allied enterprises

" a.  The equity investment of a universal bank, or of its wholly or majority-owned subsidiaries, in a single non-allied enterprise shall not exceed thirty-five percent (35%) of the total equity in that enterprise nor shall it exceed thirty-five percent (35%) of the voting stock in that enterprise.

For the purpose of determining compliance with the ceiling prescribed in the preceding paragraph, (i) the equity investment of the bank; and (ii) the equity investment of the bank's subsidiaries, shall be combined."

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

ARMANDO L. SURATOS Officer-In-Charge