June 04, 2024 (MLN): United Bank Limited (PSX: UBL) organized the official launch ceremony of UBL Currency Exchange, a wholly owned subsidiary of the bank, in Karachi yesterday.
The ceremony was attended by Jameel Ahmad, Governor of the State Bank of Pakistan (SBP), Muhammad Jawaid Iqbal, president and CEO of UBL bank, along with other senior team members of SBP and UBL.
The establishment of the currency exchange was approved by the board on September 12, 2023, with Rs1 billion as the initial paid-up capital.
Subsequently, the directors decided to invest an additional Rs1bn into the currency exchange on February 21, 2024, taking the paid-up capital in its subsidiary to Rs2bn.
The aforementioned approvals of the BoD were subject to the approval/clearance by the State Bank of Pakistan and all other regulatory compliances required in this regard in both Pakistan and the UK.
Lately, SBP informed that the leading banks actively engaged in foreign exchange business will establish wholly owned ECs to cater to the legitimate foreign exchange needs of the general public.
Owing to the frequent regulatory issues observed in the ECs, particularly in the operations of ECs-B and franchises of ECs, the Central Bank decided to consolidate and transform various types of ECs into a single category with a well-defined mandate.
