Section 47, The Banking Act, 2019

(1) The equity capital invested by a bank or financialholding company in its subsidiary shall not exceed 15% of the net own funds of the bank or financial holding company. (2) Where a bank or financial holding company has more than one subsidiary company, the aggregate of equity capital invested in all the subsidiary companies by the bank or financial holding company shall not exceed 25% of its net own funds. (3) The aggregate amount of credit exposures including the credit facilities which a bank or financial holding company may take in respect of its subsidiaries, shall not exceed- (a) 25% of the bank or financial holding company's net-own funds where the bank or financial holding company has only one subsidiary company, or Restriction on establishment of subsidiary Limits on investment in respect of subsidiary (b) 35% of the bank or financial holding company's net-own funds where the bank or financial holding company has more than one subsidiary company. (4) In a determination on an application by a bank to invest or increase its equity interests in a financial company, the Central Bank shall consider whether - (a) the investment would expose the bank or its depositors to undue risk; (b) the investment would hinder effective supervision of the bank on a consolidated basis; and (c) the bank has adequate financial and managerial resources and internal controls to monitor and control any risk arising from the investment. (5) A bank or financial holding company who contravenes this section is liable to an administrative penalty.