Credit from banks to qualified shareholders should not exceed … – Jornal de Negócios – Portugal

Credit to qualified shareholders of banks should not exceed 15% of own funds

The total credit from banks to all its shareholders with stakes qualified should not be allowed to exceed an amount equivalent to 15% of its own funds, recommends evaluating committee of the Bank of Portugal BES case. Group also suggests that there are changes to enforce the clear identification of all investors with over 2% of a bank.

There should be “a gradual reduction of the exposure limit” from one bank to the holders of qualifying holdings. Individually, credit must not exceed 5%. And for total funding provided by a financial institution to all its qualifying shareholders the maximum level should not go beyond 15%.

This is one of the recommendations of the Evaluation Committee of the action of the Bank of Portugal If BES, created by Carlos Costa in order to improve the functioning of supervisor and recommend legislative changes for the same purpose.

Also, to be clear what investors that, in fact, they have more than 2% of a bank, legislative amendments should be made to compel financial institutions to disclose the names of shareholders and, if they are concerned societies, the identification of the ultimate beneficiaries of those holdings.

Regardless of this change legislative, the Bank of Portugal “should not tolerate, in any case, the lack of clarification on which the last beneficiaries of holding reaching at least 2% of capital or voting rights.” Ultimately, if these explanations are not given, the supervisor “should inhibit the voting rights attaching to these shares until the full clarification of the situation.”