Equity Investments
Powers
General Limit
Thrift Bank/ Rural Bank/Financial
Allied Enterprise
Universal bank/Commercial Bank
Non-financial allied enterprise
Non-allied enterprise
1"net worth" shall mean the total of the unimpaired paid-in capital including paid-in surplus, retained earnings and
undivided profit, net of valuation reserves and other adjustments as may be required by the Bangko Sentral.
Universal Bank
-Powers of a commercial bank
-Powers of an investment house
-Power to invest in non-allied
enterprises
Can invest in the following:
1. Allied enterprises, whether
financial or non-financial
2. Non-allied enterprises
Total investment in A and NA
shall not exceed 50% of the net
worth1 of the UB
Investment in one enterprise (A
or NA) shall not exceed 25% of
net worth of the bank
Can own up to 100% of the
equity of the TB, RB or GAE.
A publicly listed universal bank
may own up to 100% of the
voting stock of only one other
universal or commercial bank
May own up to 100% of the
equity in NFAE
Not exceeding 35% of the total
equity of the NAE, and not
exceeding 35% of voting stock of
that enterprise
Commercial Bank
-General powers incident to
corporations
-Functions necessary to carry on
business like accepting drafts,
issuing letters of credit,
discounting and negotiating
promissory notes, drafts, and
bills of exchange; accepting or
creating demand deposits;
buying and selling foreign
exchange
Can invest only in allied
enterprises, whether financial or
non-financial
Total investment in AE shall not
exceed 35% of net worth of the
CB
Total equity investment in one
AE shall not exceed 25% of net
worth of CB
Can own up to 100% of equity of
TB or RB
In other financial allied
enterprise, investment should be
minority in that enterprise
A publicly listed commercial bank
may own up to 100% of the
voting stock of only one other
universal or commercial bank
If not publicly listed commercial
bank, investment in another
commercial bank shall remain a
minority in that other
commercial bank
May own up to 100% of the
equity in NFAE
Not allowed