Section 1
SECTION 1. With the prior approval of the Monetary Board and subject to existing banking laws, banks may acquire a majority of the equity of a venture capital corporation organized to assist small and medium-scale enterprises primarily in the form of equity financing: Provided, That (a) the equity investment of a bank or of two or more banks shall not exceed sixty per cent (60%) of the total equity of the voting stock in that corporation; (b) the initial paid-up capital of the venture capital corporation shall not exceed five million pesos (P5,000,000.00); (c) any increases in paid-up capital of the venture capital corporation shall be subject to prior Monetary Board approval; and (d) a bank shall not invest in more than one (1) venture capital corporation. Small and medium-scale enterprises shall refer to enterprises with total assets not exceeding four million pesos or such amount as the Monetary Board may prescribe as may be warranted by prevailing economic conditions.