March 22, 2024 (MLN): The State Bank of Pakistan (SBP) has issued the license for the commencement of operations to AL Habib Exchange Company (Private) Limited, a fully-owned subsidiary of Bank AL Habib Limited (PSX: BAHL), the bank’s filing on the local bourse revealed today.
The issuance of the license by the SBP for the commencement of operations follows the prior issuance of the Certificate of Incorporation to the exchange company by the Securities and Exchange Commission of Pakistan (SECP).
The Bank has duly caused this form/statement to be signed on its behalf by the undersigned hereunto duly authorized.
To recall, BAHL announced on September 22, 2023, regarding the Board's approval to establish an Exchange Company as a wholly owned (100%) subsidiary of the Bank with an authorized share capital of Rs1 billion).
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.
