Bank of Punjab to establish an exchange company
In response to recent structural reforms by the State Bank
of Pakistan in the Exchange Company sector and the challenges posed by the
depreciation of the Pakistani rupee in the open market, the Bank of Punjab
(PSX: BOP) has revealed its intention to create an Exchange Company. This
development was communicated to the Pakistan Stock Exchange on Monday.
According to the stock filing, "Leading Banks have been
encouraged to establish wholly owned Exchange Companies with an authorized
capital of Rs. 2.5 billion in light of the recent structural reforms by the
State Bank of Pakistan in the Exchange Company’s sector and challenges posed by
the recent depreciation in the Pakistani rupee in the open market."
Banks
involved in foreign exchange activities to establish wholly-owned exchange
companies
Furthermore, the announcement stated, "In view of the
current market potential and future expansion needs, an initial feasibility
report for the establishment of 'BOP Exchange Company' was proposed to the
Board of The Bank of Punjab in its meeting held on October 28, 2023."
It is important to note that the establishment of this
company is contingent on obtaining the necessary approvals and clearances from
the State Bank of Pakistan (SBP), the Securities and Exchange Commission of
Pakistan (SECP), and meeting all other regulatory compliance requirements, as
mentioned in the notice.
Askari
Bank to establish exchange company
This initiative follows the central bank's directive for
banks to establish wholly-owned foreign exchange entities, and several other
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 also announced the establishment of their Exchange Companies.
Source: https://propakistani.pk/