QuestionsQuestions (BSP CIRCULAR NO. 96, S. 1995)
It amends specific provisions of the Manual of Regulations for Banks and Other Financial Intermediaries—Subsecs. 1346.4.A (Book I), 2346.4.A (Book II), and Item 4.A of Appendix 18 (Book IV)—to adopt a policy that excludes the equity of multilateral financial institutions when determining capital stock ownership by non-Filipino citizens, pursuant to Monetary Board Resolution No. 1164 (s. 1995).
It adopts the exclusion of equity of multilateral financial institutions in determining capital stock ownership by non-Filipino citizens under Circular No. 572, as amended.
A “foreign firm” includes partnerships where more than forty percent (40%) of the capital is owned by non-Filipino citizens.
A “foreign firm” includes corporations where more than forty percent (40%) of the total subscribed capital stock is owned by non-Filipino citizens.
If the applicable ownership threshold is exceeded (over 40% held by non-Filipino citizens), the partnership or corporation is classified as a “foreign firm,” which affects regulatory treatment under banking rules.
The equity of multilateral financial institutions is excluded, but only if the institution meets the qualifications stated in the circular.
(1) Owned or controlled by member countries but does not possess any national identity; (2) sources funds from capital stock subscriptions and contributions by member countries; and (3) primary responsibility is to provide funds for developmental purposes and international economic stability.
It requires that the institution is owned or controlled by member countries but does not possess any national identity.
It must source its funds from capital stock subscriptions and contributions by member countries.
Its primary responsibility must be to provide funds for developmental purposes and international economic stability.
Subsecs. 1346.4.A (Book I), 2346.4.A (Book II), and Item 4.A of Appendix 18 (Book IV).
Monetary Board Resolution No. 1164 dated October 11, 1995; it adopts as policy the exclusion of equity of multilateral financial institutions in determining capital stock ownership by non-Filipino citizens under Circular No. 572, as amended.
It modifies the way capital stock ownership by non-Filipino citizens is determined under Circular No. 572 (as amended) by excluding multilateral financial institution equity, subject to the stated qualifications.
Yes, both use the same threshold concept (>40% ownership by non-Filipino citizens), but they measure it differently: partnerships use % of capital, while corporations use % of total subscribed capital stock.
It takes effect immediately upon adoption (dated October 31, 1995).
No. The definition uses “more than forty percent (40%).” Exactly 40% would not exceed the threshold based on the plain wording.