Meezan Bank to establish exchange company with Rs. 1 billion capital
Meezan Bank Limited (PSX: MEBL) has received approval from its
Board of Directors to establish an exchange company with a paid-up capital of
Rs. 1 billion, as announced by the commercial bank in its communication to the
Pakistan Stock Exchange on Friday.
As per the stock filing, this exchange company will be
classified as a wholly-owned subsidiary of MEBL, pending approval from the
State Bank of Pakistan (SBP) and adherence to other regulatory requirements.
UBL
to establish exchange company, sell UK subsidiary to Bestway Group
Earlier in the same week, United Bank Limited (PSX: UBL) also
obtained approval for the creation of an exchange company.
These developments follow a recent crackdown on illicit foreign
exchange agents and the subsequent announcement by the SBP to implement
structural reforms within the Exchange Companies' sector. As part of these
reforms, major banks actively involved in foreign exchange operations will
establish Exchange Companies to address the legitimate foreign exchange
requirements of the general public.
Banks
involved in foreign exchange activities to establish wholly-owned exchange
companies
It's worth noting that the minimum capital requirement for
Exchange Companies has been increased from Rs. 200 million to Rs. 500 million.
Source: Pro Pakistani