Askari Bank Limited has announced that its wholly-owned subsidiary, Askari Currency Exchange (Pvt.) Limited, has received the necessary license from the State Bank of Pakistan (SBP) to commence operations.
This development follows the issuance of a certificate of incorporation by the Securities and Exchange Commission of Pakistan (SECP) on April 19, 2024.
“We are pleased to inform that the State Bank of Pakistan (SBP) has issued a license for commencement of operations to “Askari Currency Exchange (Pvt.) Limited”, a wholly owned subsidiary of the Bank,” Askari Bank said in a notice sent to the Pakistan Stock Exchange (PSX).
Askari Bank approved the establishment of a wholly-owned exchange company with an initial capital of Rs 1 billion on October 27, 2023.
The establishment of an exchange company is part of Askari Bank’s strategic expansion into the currency exchange market, aiming to offer a wide range of financial services to its customers.
Last year, the State Bank of Pakistan unveiled a set of reforms related to exchange companies, citing frequent regulatory issues and weaknesses, especially in the operations of exchange companies in category B as well as franchises of exchange companies.
Under the SBP’s reforms, all exchange companies in categories A and B along with franchises of exchange companies will be consolidated and transformed into a single category with a well-defined mandate.
The central bank also raised the minimum capital requirement for exchange companies to Rs 500 million (free of losses), saying this will strengthen their solvency and infrastructure.
