The Bank of Punjab (PSX: BOP) is set to establish an Exchange Company, the bank informed the Pakistan Stock Exchange on Monday.
“In view of the recently introduced structural reforms by State Bank of Pakistan in the Exchange Company’s sector and challenges posed by the recent depreciation in Pakistani rupee in the open market, leading Banks have been encouraged to establish wholly owned Exchange Companies with an authorized capital of Rs. 2.5 billion,” said the stock filing.
“Accordingly, in view of the current market potential and future expansion needs, an initial feasibility report for the establishment of “BOP Exchange Company” was proposed to the Board of The Bank of Punjab in its meeting held on October 28, 2023,” it added.
The setting up of the company is subject to approval/clearance of the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), and completion of other regulatory compliance requirements, the notice added.
Since the central bank’s announcement for banks to set up wholly-owned foreign exchange entities, United Bank Limited, Bank Al Habib, MCB Bank, Allied Bank, Meezan Bank, Bank Alfalah, Habib Metropolitan Bank Limited, Faysal Bank, and Askari Bank have all announced the establishment of Exchange Companies.
