Askari Bank Limited (PSX: AKBL) has approved the establishment of a wholly-owned Exchange Company with an initial capital of Rs1 billion.
According to a stock filing by the bank at PSX today, this move is pending approval from the State Bank of Pakistan (SBP) and compliance with regulatory requirements. The decision demonstrates the bank’s commitment to expanding its presence in the financial sector and diversifying its services, pending regulatory clearance.
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In a related development, the SBP issued the no-objection certificate (NOC) to Allied Bank Limited and MCB Bank Limited for establishing their exchange companies. Allied Bank’s exchange company will be named ABL Exchange Company (Private) Limited and MCB’s as MCB Exchange Company (Private) Limited.
This move is part of a broader effort to combat illicit activities in the black market. The SBP is implementing structural reforms in the exchange company sector to strengthen oversight, governance structures, internal controls, and compliance procedures.
The SBP has also increased the minimum capital requirement for exchange companies from Rs 200 million to Rs 500 million, with the added condition that the capital must be free of losses.
Askari Bank Limited joins several major banks, including United Bank Limited (UBL), Meezan Bank, MCB Bank Limited (MCB), Bank AL Habib (BAHL), Allied Bank Limited (ABL), Faysal Bank Limited (FABL), Bank Alfalah (BAFL) and Habib Metropolitan Bank in their pursuit to establish their own forex companies.
Notably, Habib Bank Limited (HBL) and the National Bank of Pakistan (NPB) had ventured into exchange companies before the implementation of these new SBP regulatory measures.
I like this askari bank plans