The Board of Directors of MCB Bank Limited (PSX: MCB) has
given the green light to the creation of an exchange company with an initial
paid-up capital of Rs. 1 billion, as disclosed by the commercial bank in its
announcement to the Pakistan Stock Exchange on Monday.
As stated in a stock filing, this exchange company will be classified as a wholly-owned subsidiary of MCB, pending approval from the State Bank of Pakistan (SBP) and adherence to other regulatory requirements.
Banks
involved in foreign exchange activities to establish wholly-owned exchange
companies
Last week, both United Bank Limited (PSX: UBL) and Meezan Bank Limited (PSX: MEBL) also sanctioned the establishment of their own exchange companies.
These developments follow a nationwide crackdown on black market operators in the past two weeks and the subsequent announcement by the SBP to implement structural reforms within the Exchange Companies' sector. As part of these reforms, leading banks actively involved in foreign exchange operations will establish Exchange Companies to meet the legitimate foreign exchange needs of the general public.
It's worth noting that the minimum capital requirement for Exchange Companies has been raised to Rs. 500 million.
Source: Pro Pakistani