The Government approved a draft amendment of the Banking Act separating the investment and banking activities of local institutions. The participation of a bank in other companies would be limited to 60% of the banks capital and the maximum participation in a single company would be 15% of the banks capital.

The changes would apply as well to companies owned by investment firms under a banks control. The banks will not be allowed to own more than 10% of the basic capital of any non-financial company. However, this will not apply to companies owned by investment firms that are controlled by banks. The amendment is expected to take effect on January 1998.

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