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PD 71 Section 11

Section 11

SEC. 11. The same Act is hereby amended by adding the following section immediately after Section fourteen thereof, which reads as follows: "SEC. 14-A. Foreign banking institutions without branches in the Philippines, including (a) their wholly or majority owned subsidiaries, and (b) their holding companies having majority holdings in such foreign banking institutions, may invest, with prior approval of the Monetary Board, in equities of local companies engaged in financial allied undertakings under the same restrictions imposed on domestic banks of the same category, as provided for in Sections twenty-one-A and thirty-one of this Act, or in other banking laws. In any case, the aggregate holdings of voting stocks of all foreign entities in any single domestic financial enterprise shall remain a minority participation in that enterprise. "With prior approval of the Central Bank, these foreign entities may also purchase foreign-owned equities in domestic banks: Provided, That their aggregate holdings of voting stocks shall remain at all times a minority in the local bank. "Equity investment of foreign non-bank corporations, excluding the wholly or majority-owned subsidiaries of foreign banking institutions and their holding companies referred to in this section, in domestic non-financial undertakings need not be subject to the above limitations except as may otherwise be provided for by special laws. "The foregoing limitations shall not apply either to international or regional inter-governmental financial organizations and their subsidiaries of which the Philippines is a member."

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Other provisions in PD 71

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationPD 71 Section 11 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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