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PD 71 Section 22

Section 22

SEC. 22. Section thirty-one of the same Act is further amended by adding the following subsections after subsection (i) thereof, which reads as follows: "(j) Equities of allied undertakings as may be approved by the Monetary Board for savings and mortgage banks: Provided, That (1) the total investment in equities shall not exceed twenty-five per cent (25%) of the net worth of the bank, (2) the equity investment in any single enterprise shall not exceed fifteen per cent (15%) of the net worth of the bank, (3) the total equity investment of the bank in any single enterprise shall remain a minority holding in that enterprise, except where the enterprise is not a financial intermediary, and (4) the equity investment in other banks, if allowed by the Monetary Board, shall be subject to the same limitations imposed on similar investment of commercial banks and shall be deducted from the investing bank's net worth for the purposes of computing the prescribed ratio of net worth to risk assets. Equity investments shall not be permitted in non-related activities. "Where the allied undertaking is a wholly or majority-owned subsidiary of the bank, it may be subject to examination by the Central Bank."

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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 22 (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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