Bank Alfalah to set up exchange company with a capital of
Rs. 2 billion
Bank Alfalah Limited (PSX: BAFL) has gained approval from
its Board of Directors to create an exchange company with an initial paid-up
capital of Rs2 billion.
The bank intends to secure the necessary capital by issuing
200 million ordinary shares at a rate of Rs10 per share, as disclosed in a
filing on the Pakistan Stock Exchange (PSX) on Tuesday.
Faysal
Bank to establish wholly-owned exchange company
This newly established exchange company will operate as a
wholly-owned subsidiary of Bank Alfalah. However, this decision is contingent
upon receiving approval and clearance from the State Bank of Pakistan (SBP) and
fulfilling other regulatory compliance requirements.
This initiative forms part of a broader strategy aimed at
countering unlawful activities within the black market. The SBP is actively
implementing structural reforms within the exchange company sector, focusing on
enhancing oversight, strengthening governance structures, fortifying internal
controls, and ensuring rigorous compliance procedures.
MCB
Bank Ltd. to establish exchange company
Additionally, the SBP has raised the minimum capital
requirement for exchange companies from Rs 200 million to Rs 500 million, with
the stipulation that this capital must be free from any prior losses.
Bank Alfalah now joins the ranks of several major banks,
including United Bank Limited (UBL), Meezan Bank, MCB Bank Limited (MCB), Bank
AL Habib (BAHL), Allied Bank Limited (ABL), and Faysal Bank Limited (FABL), in
their pursuit of establishing their own foreign exchange companies.
It is worth noting that Habib Bank Limited (HBL) and the
National Bank of Pakistan (NPB) had ventured into exchange companies before the
implementation of these new regulatory measures by the SBP.
Source: Profit Pakistan