Bank of Khyber to launch exchange company with initial capital
of Rs1 billion
The Bank of Khyber (BOK) has announced its intention to
establish a wholly-owned Exchange Company with an initial paid-up capital of up
to Rs1 billion. This decision was disclosed in a stock filing on the Pakistan
Stock Exchange (PSX) on Friday.
The BOK's board approved the establishment of this exchange
company during their meeting held on November 3, 2023. However, it's important
to note that the board's decision is subject to approval and clearance by the
State Bank of Pakistan (SBP) and the fulfillment of other regulatory compliance
requirements.
Bank
of Punjab to establish an exchange company
The BOK's initiative is a crucial component of a broader
campaign led by the SBP to combat illicit activities within the underground
market. The SBP has recently implemented structural reforms within the exchange
company sector to strengthen regulatory oversight, enhance governance
frameworks, fortify internal controls, and tighten compliance protocols.
Additionally, the SBP has increased the minimum capital
requirement for exchange companies from Rs 200 million to Rs 500 million, with
the added condition that the capital must be free from prior losses.
Several major banks, including United Bank Limited (UBL),
Meezan Bank, MCB Bank Limited (MCB), Bank AL Habib (BAHL), Allied Bank Limited
(ABL), Faysal Bank Limited (FABL), Bank Alfalah (BAFL), Habib Metropolitan
Bank, Askari Bank Limited, and Bank of Punjab, have previously announced their
plans to establish their own forex companies.
Faysal
Bank to establish wholly-owned exchange company
The SBP has issued a no-objection certificate (NOC) to ABL
and MCB for the establishment of their exchange companies. Allied Bank's
exchange company will be known as ABL Exchange Company (Private) Limited, and
MCB's as MCB Exchange Company (Private) Limited.
It's worth noting that Habib Bank Limited (HBL) and the
National Bank of Pakistan (NBP) had entered into the exchange company sector
before the implementation of these new regulatory measures by the SBP.
Source: Profit Pakistan