Faysal Bank Limited granted approval to establish exchange
company
Faysal Bank Limited has obtained approval from the
Securities and Exchange Commission of Pakistan (SECP) to establish a Currency
Exchange Company as its subsidiary. The second-largest Islamic bank in the
country informed the Pakistan Stock Exchange (PSX) that it has received a
certificate of incorporation from the SECP. The next step involves securing
approval from the State Bank of Pakistan to commence the commercial operations
of its wholly-owned subsidiary.
Following the lead of major commercial banks, Faysal Bank's
management decided to establish a currency exchange company last year, a move
sanctioned by the banking watchdog to regulate foreign exchange activities
nationwide. This regulation aims to effectively monitor the outflow of foreign
currency.
Faysal
Bank to establish wholly-owned exchange company
Previously, the banking regulator opted to close down the
operations of exchange companies under category B due to non-compliance with
rules and regulations. Their operations were terminated immediately, and
subsequently, all similar exchanges were instructed to phase out their
operations.
The State Bank of Pakistan has permitted commercial banks to
establish separate exchange companies as subsidiaries, providing an alternative
option. Additionally, currency exchange companies have been allowed to merge
their operations either with each other or with exchange companies falling
under category A.
Faysal
Bank Limited wins "Best Emerging Islamic Bank 2023" honors at GIFA
Awards
Several commercial banks with substantial assets and
deposits swiftly announced the establishment of exchange companies, including
HBL, UBL, Meeza Bank, Bank Al Habib, and now Faysal Bank.
Source: Pro Pakistani