Reclassifying equity investments in insurance companies of banks with expanded commercial banking authority

CIRCULAR NO. 77 Series of 1995

The Monetary Board, in its Resolution No. 605 dated June 6, 1995, approved the amendment of Book I of the Manual of Regulations for Banks and Other Financial Intermediaries by reclassifying equity investments in insurance companies of banks with expanded commercial banking authority from investments in non-allied financial undertakings to investments in allied financial undertakings, provided that the equity investment in an insurance company of an expanded commercial bank, any of its wholly or majority-owned subsidiaries, its directors, officers and stockholders owning two percent (2%) or more of the bank's subscribed capital stock, shall not exceed fifty-one percent (51%) of the total subscribed capital stock and the total voting stock of such insurance company.

This Circular supersedes Circular No. 1289 dated June 6, 1991 and shall take effect immediately.

FOR THE MONETARY BOARD:

GABRIEL C. SINGSON Governor