The Bank of Punjab (PSX: BOP) revealed its intention to establish a wholly owned Exchange Company, as stated in a recent notification to the Pakistan Stock Exchange on Monday.
In response to the recent structural reforms introduced by the State Bank of Pakistan in the Exchange Company sector, and in light of the challenges presented by the recent depreciation of the Pakistani rupee in the open market, leading banks have been encouraged to establish such entities, the stock filing explained.
The filing outlined, “Given the current market potential and anticipated future expansion requirements, an initial feasibility report for the establishment of ‘BOP Exchange Company’ was proposed to the Board of The Bank of Punjab during its meeting held on October 28, 2023.”
The establishment of the company is contingent upon the approval and clearance of the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), and the fulfillment of other regulatory compliance requisites, the notice further clarified.
Following the central bank’s directive for banks to initiate wholly-owned foreign exchange entities, various leading banks including United Bank Limited, Bank Al Habib, MCB Bank, Allied Bank, Meezan Bank, Bank Alfalah, Habib Metropolitan Bank Limited, Faysal Bank, and Askari Bank have all announced their respective plans for the establishment of Exchange Companies.