ABSTRACT

In addition to the limitation on banks to invest in equity interests, a bank is prohibited from investing, in the aggregate, more than 70% of its regulatory capital (as defined by regulation) in equity interests in any person, property or project.92 However, the two limitations set out above are inapplicable in the case of an investment or investments by a bank in the shares of a subsidiary, if the aggregate of all such investments by the bank does not exceed 100% of its regulatory capital (as defined by regulation).93