Section 3Sec./Art. 3

Section 4 of Republic Act No. 7721 is hereby amended to read as follows:

"SEC. 4. Capital Requirements. (i) For Locally Incorporated Subsidiaries The minimum capital required for locally incorporated subsidiaries of foreign banks shall be equal to that prescribed by the Monetary Board for domestic banks of the same category.

"(ii) For Foreign Bank Branches Foreign banks that shall be authorized to establish branches pursuant to Section 2(hi) of this Act shah permanently assign capital of an amount not less than the minimum capital required for domestic banks of the same category. The permanently assigned capital shall be inwardly remitted and converted into Philippine currency.

"The foreign bank branch may open up to five (5) sub-branches as may be approved by the Monetary Board. Locally incorporated subsidiaries of foreign banks pursuant to Section 2(h) of this Act shall have the same branching privileges as domestic banks of the same category."