Financial Institutions and Markets (J)




Financial Institutions and Markets (J)


Introduction

Since the turn of the millennium, there has been an increase in the variety and use of capital structures of a company. Under the well-known and widely accepted Modigliani and Miller theorem (“M-M theorem”), regulators would be able to achieve any particularly desirable mix of debt and equity in banks at negligible cost, since leverage (banks' debt: equity ratio) would then be irrelevant to lending and its pricing[1]. Although it is proposed by the M-M theorem that the capital structure of a company[2]i.e. how the combination of debt and equity is managed, is irrelevant for the value of the firm, this classical theorem has been challenged by many other theorems, such as the ‘trade-off’ theory, the ‘agency costs’ theory, and ‘pecking-order’ theory (Ferran, pp. 54-56)[3].

Read more: Recent Developments Regarding Alternative Investment Funds in Europe


Since 01.01.2017 a new Ordinance came into force - Ordinance № 12 of 29.09.2016 on the Register of bank accounts and safe deposit boxes (RBASDB). It regulates the functioning, scope, procedure and deadlines for filing and obtaining information from RBASDB which is maintained by the Bulgarian National Bank (BNB). The register is an electronic information system that provides centralized information on bank account numbers, their holders and persons authorized to operate with the accounts, as well as customers of safety deposit boxes in banks and persons authorized by them. The ones who are entitled to obtain information from the “Register” are the authorities and institutions under article 56a, paragraph 3 (the judicial authorities, National Revenue Agency, State Agency “National Security”, Chief Directorate “National Police”, Chief Directorate “Combating Organized Crime”, the enforcement agents when an enforcement case is filed, banks, etc.), as well as natural persons and legal entities under article 56a paragraph 4 of the Law on Credit Institutions (LCI). Banks and branches of foreign banks operating in the country, as well as the BNB, have an obligation to submit the necessary information to the “Register”.

Read more: New Register of Bank Accounts and Safety Deposit Boxes in Bulgaria


By: Kevin Yehezkiel N. (Associate)

Prior to the closing of 2016, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) gave a timely present to the public. The OJK enacted Regulation No. 77/POJK.01/2016 concerning Information Technology (IT) Based Lending Services (“POJK 77/2016”), which came into effect on 28 December 2016. The long awaited regulation is expected to answer questions arising from society, on how Indonesia will adapt to the spread of financial technology.

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Fenech Farrugia Fiott Legal are proud to announce the publication of the Malta chapter in the prestigious publication- The Transport Finance Law Review. The publication is international in scope and is designed to provide industry insights to transport finance in each of the key jurisdictions in which ships, rolling stock and aircraft are financed.

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By: Jono Yeo (Managing Associate) and Kevin Yehezkiel N. (Associate)

On 27 July 2016, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) enacted OJK Regulation No. 27/POJK.03/2016 regarding Fit and Proper Test for the Primary Party of Financial Services Institutions (“POJK No. 27/2016”), which came into effect on 1 August 2016 for Financial Services Institutions (other than pawn companies) (“FSI”), and on 27 July 2018 for pawn companies. Following the enactment of POJK No. 27/2016, on 30 August 2016, OJK has also enacted Circular Letter of OJK No.31/SEOJK.05/2016 to support POJK No. 27/2016 (“SEOJK No. 31/2016”).

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Read more: New OJK Regulation in Indonesia - Fit and Proper Test for the Primary Party of Financial Services...