The Board of Directors of Bank AL Habib Limited (PSX: BAHL) has approved the establishment of an exchange company with Rs. 1 billion as authorized share capital, the commercial bank informed the Pakistan Stock Exchange on Friday.
According to a stock filing, the exchange company will be categorized as a 100 percent owned subsidiary of BAHL subject to approval by the State Bank of Pakistan (SBP) and other regulatory compliances.
Earlier this week, MCB Bank Limited (PSX: MCB) also announced setting up an exchange company.
Last week, United Bank Limited (PSX: UBL) and Meezan Bank Limited (PSX: MEBL) each approved the establishment of their respective exchange companies.
SBP recently introduced structural reforms in the Exchange Companies’ sector to cater to the legitimate foreign exchange needs of the general public. The central bank’s action was in reaction to various concerns that have been detected in the operations of exchange firms.
It is expected that leading banks actively engaged in foreign exchange will establish Exchange Companies to cater to the currency needs of the general public.