September 28, 2023 (MLN): The Board of Directors of Faysal Bank Limited (PSX: FABL) has approved the establishment of an Exchange Company with an initial paid-up capital of up to Rs1 billion, the bank’s filing on PSX revealed today.
The exchange company would be a wholly owned subsidiary of the bank.
The board’s decision is subject to approval/clearance by the State Bank of Pakistan (SBP) and 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) 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 that have been 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.
In addition to FABL, certain banks including, 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.
