August 6, 1996
BSP CIRCULAR LETTER
| TO | : | All Thrift Banks |
| SUBJECT | : | Ownership Ceilings Under R.A. No. 7906 |
The following clarifications regarding Section 8 of R.A. No. 7906, otherwise known as the Thrift Banks Act of 1995, are hereby issued.
1. On the coverage of the 10-year moratorium period
The exemption from "ownership ceilings" refers to ceilings on family groups and corporate holdings under Sections 12-B, 12-C and 12-D of R.A. No. 337, as amended. It does not refer to limits on foreign ownership prescribed in Sections 12 and 12-A of said law.
2. On the matter of foreign holdings
The sixty percent (60%) limit on foreign ownership in the voting stock of thrift banks shall only apply to those incorporated after February 28, 1995.
Foreign holdings in thrift banks established before or after the approval of R.A. No. 7906 are not covered by the 10-year moratorium period on ownership ceilings. Section 8 of R.A. No. 7906 states that 40% of the voting stock of a thrift bank which may be established after the approval of this Act shall be owned by...
