The Board of Directors of Meezan Bank Limited (PSX: MEBL) has given the green light for the creation of an exchange company with a paid-up capital of Rs. 1 billion. The commercial bank shared this development with the Pakistan Stock Exchange on Friday.
As per the stock filing, this exchange company will be designated as a wholly-owned subsidiary of MEBL, contingent upon approval from the State Bank of Pakistan (SBP) and adherence to other regulatory requirements.
Earlier this week, United Bank Limited (PSX: UBL) granted approval for the establishment of an exchange company.
These developments follow last week’s rigorous crackdown on illicit currency exchange agents and the subsequent announcement by the State Bank of Pakistan (SBP) regarding structural reforms within the Exchange Companies sector. As a part of these reforms, prominent banks actively involved in foreign exchange operations will set up Exchange Companies to address the legitimate foreign exchange requirements of the general public.
The minimum capital requirement for these Exchange Companies has been elevated from Rs. 200 million to Rs. 500 million.