Banks Allowed to Hold Merchant Banking Investments for Up to 15 Years.
This law extends the time period during which large financial institutions (bank holding companies) can maintain equity stakes in non-banking companies (merchant banking investments). Instead of the previous shorter limit, banks will now be permitted to hold these investments for at least 15 years. This change grants banks greater flexibility in managing long-term investments, potentially affecting capital availability for businesses.
Key points
The minimum holding period for merchant banking investments by bank holding companies is extended to 15 years.
The new 15-year holding period also applies retroactively to existing investments, calculated from the initial investment date.
The goal is to modernize regulations and increase banks' flexibility in long-term corporate financing.
Status:
Placed on Calendar
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