The Board of Directors of MCB Bank Limited (PSX: MCB) has approved the establishment of an exchange company with Rs. 1 billion as initial paid-up capital, the commercial bank informed the Pakistan Stock Exchange on Monday.
According to a stock filing, the exchange company will be categorized as a wholly-owned subsidiary of MCB subject to approval by the State Bank of Pakistan (SBP) and other regulatory compliances.
Last week, United Bank Limited (PSX: UBL) and Meezan Bank Limited (PSX: MEBL) each approved the establishment of an exchange company.
These developments come after the nationwide crackdown against black market agents in the past two weeks, and the subsequent announcement by SBP to introduce structural reforms in the Exchange Companies’ sector. As part of these reforms, leading banks actively engaged in foreign exchange business will establish Exchange Companies to cater to the legitimate foreign exchange needs of the general public.
The minimum capital requirement for Exchange Companies has been increased to Rs. 500 million.