Amendments to the Guidelines Governing Equity Investments

November 27, 2009BSP CIRCULAR NO. 671-09SUBJECT : Amendments to the Guidelines Governing Equity InvestmentsThe Monetary Board, in its Resolution No. 1664 dated 19 November 2009, approved the following amendments to the guidelines governing investments of banks in allied, whether financial or non-financial, and non-allied undertakings. SECTION 1. Reportorial Requirements on Equity Investments. — The last paragraph under Item "c" of Subsection X376.5 of the Manual of Regulations for Banks (MORB) on the guidelines for major investments is hereby deleted.SECTION 2. Report on Outstanding Equity Investments in and Outstanding Loans to Non-Allied Enterprises. — Subsection 1381.3 of the MORB pertaining to the reportorial requirement on outstanding equity investments and loans of universal banks to non-allied enterprises is hereby deleted. cDCSETSECTION 3. Shares of Stock Acquired in Settlement of Loans. — Item "b" of Appendix 79 of the MORB is hereby amended to read, as follows:"Appendix 79 Guidelines in Determining Compliance with Ceilings on Equity Investments"xxx xxx xxx"b. Shares of stock acquired in settlement of loans. Shares of stock of another corporation acquired in settlement of loans...