SBP grants approval to ABL for ABL Currency Exchange

October 27, 2023 (MLN): The State Bank of Pakistan (SBP) issued the no-objection certificate to Allied Bank Limited (PSX: ABL) on Friday for establishing an exchange company in the name of ABL Exchange Company (Private) Limited.

On September 27, 2023, the Board of Directors of MCB approved the establishment of an Exchange Company with an initial paid-up capital of up to Rs1 billion.

The exchange company would be a wholly owned subsidiary of the bank.

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 ABL, certain banks including, MCB Bank Limited (PSX: MCB), Bank Alfalah Limited (PSX: BAFL), Bank AL Habib Limited (PSX: BAHL), Meezan Bank Limited (PSX: MEBL), and United Bank Limited (PSX: UBL), have decided to establish their own exchange company.

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