Askari Bank Limited (PSX: AKBL) has greenlit the establishment of a fully-owned Exchange Company, with an initial capital infusion of Rs1 billion. The official stock filing by the bank at the Pakistan Stock Exchange (PSX) today highlighted this strategic move, pending final approval from the State Bank of Pakistan (SBP) and adherence to requisite regulatory protocols. The decision underscores the bank’s steadfast dedication to expanding its footprint in the financial sector and broadening its service offerings, subject to regulatory authorization.
Simultaneously, the State Bank of Pakistan (SBP) granted the no-objection certificate (NOC) to Allied Bank Limited and MCB Bank Limited, enabling them to establish their exchange companies. Allied Bank’s exchange company is to be named ABL Exchange Company (Private) Limited, while MCB’s entity will be recognized as MCB Exchange Company (Private) Limited.
This initiative forms part of a larger endeavor to curb unlawful activities within the parallel currency market. The SBP is actively implementing structural reforms in the exchange company sector, emphasizing strengthened oversight, robust governance frameworks, internal controls, and stringent compliance procedures.
Furthermore, the SBP has raised the minimum capital requirement for exchange companies from Rs 200 million to Rs 500 million, with the added stipulation that the capital must remain unencumbered by losses.
Joining the ranks of several prominent banks such as United Bank Limited (UBL), Meezan Bank, MCB Bank Limited (MCB), Bank AL Habib (BAHL), Allied Bank Limited (ABL), Faysal Bank Limited (FABL), Bank Alfalah (BAFL), and Habib Metropolitan Bank, Askari Bank Limited is positioning itself to establish its forex companies.
Notably, Habib Bank Limited (HBL) and the National Bank of Pakistan (NBP) had ventured into exchange companies before the implementation of these recent SBP regulatory measures.
