Regulatory Alerts2009-02-05
Added · Updated
D2/09: Investments and loans and advances by controlling companies: Section 50 of the Banks Act, 1990
The directive specifies that the aggregate amount of a controlling company's investments in and loans or advances to specified non-bank undertakings or fixed property must not exceed 40 per cent of the controlling company's share capital and reserve funds. This 40 per cent threshold is calculated based on the unconsolidated or entity-only balance sheet of the controlling company. The prescribed amount of share capital and reserve funds is defined as the figure reported in item 23, column 2 of form BA 700, adjusted for specific deductions related to investments already included in the aggregate amount. The prescribed basis for consolidation is determined by regulations 36 and 38 of the Regulations relating to Banks and the requirements in form BA700.