Bank Alfalah Limited (PSX: BAFL) is set to establish an Exchange Company with an authorized share capital of Rs. 2 billion, the bank informed the Pakistan Stock Exchange on Tuesday.
The Board of Directors of BAFL approved the establishment of an exchange company in accordance with the framework prescribed by the State Bank of Pakistan with an authorized share capital of Rs. 2 billion divided into 200,000,000 ordinary shares of Rs. 10 each, subject to approval/clearance by the State Bank of Pakistan and completion of other regulatory compliance requirements, according to a stock filing.
“The Exchange Company would be a wholly owned subsidiary of the Bank and will operate as an exchange company within the framework prescribed by the State Bank of Pakistan,” the filing added.
In September, the central bank announced a number of structural reforms in the Exchange Companies sector where banks actively engaged in the exchange business were to set up wholly owned Exchange Companies to cater to the legitimate foreign exchange needs of the general public.
Since this announcement, Faysal Bank (PSX: FABL), United Bank Limited (PSX: UBL), Bank Al Habib (PSX: BAHL), MCB Bank (PSX: MCB), Allied Bank (PSX: ABL), Meezan Bank (PSX: MEBL) have all announced to set up Exchange Companies.