Moratorium on ownership ceiling

CIRCULAR NO. 378 Series of 2003

Pursuant to Monetary Board Resolution No. 142 dated January 30, 2003 allowing the retention of the individual stockholdings in rural banks in excess of the 40% ceiling as of April 2, 2002, Subsection 3127.1 of the Manual of Regulations for Banks is hereby amended to read as follows:

Subsec. 3127.1  Moratorium on ownership ceiling.  Individual stockholdings in rural banks in excess of the 40% ceiling as of April 2, 2002 and as provided in Section 11 of Republic Act No. 8791 be retained:  Provided, That such excess stockholdings were approved by the Monetary Board; Provided further, That such stockholdings shall not be further increased, but may be reduced and once reduced, shall not thereafter be increased beyond the 40% ceiling prescribed under said Section 11."

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR. Officer-in-Charge