(iii)  Investment in the capital instruments of other banks and financial institutions is restricted to 10% of investing banks’ capital funds, in addition to the stipulation that a bank cannot hold more than 5% of other bank’s equity.
We have some evidence from recent years that all or most of the decline in the saving rate is accounted for by the upper income quintile where the capital gains have disproportionately accrued, which suggests that the wealth effect has been real and significant.