October 30, 2023 (MLN): The management of The Bank of Punjab (PSX: BOP) presented an initial feasibility report to the Board of Directors (BoD) during its meeting held on October 28, 2023, regarding the establishment of the "BOP Exchange Company."
The board’s decision is subject to approval/clearance by the State Bank of Pakistan (SBP) and the completion of other regulatory compliance requirements.
This development comes after the SBP introduced reforms for the banks engaged in foreign exchange business to establish wholly owned Exchange Companies (ECs) with an authorized capital of Rs. 2.5 billion, to cater to the legitimate foreign exchange needs of the general public.
This action taken by the central bank comes in response to various regulatory issues observed in the operations of ECs.
With this initiative, the SBP aims to consolidate and transform various types of ECs into a single category with a well-defined mandate.
Following these guidelines, certain banks including, Askari Bank Limited (PSX: AKBL), Bank Alfalah Limited (PSX: BAFL), Allied Bank Limited (PSX: ABL), Bank AL Habib Limited (PSX: BAHL), MCB Bank Limited (PSX: MCB), Meezan Bank Limited (PSX: MEBL), and United Bank Limited (PSX: UBL), have decided to establish their own exchange company
