Meezan Bank Gears Up to Establish New Exchange Company
Meezan Bank Limited has announced plans to establish an exchange company. The decision was approved by the bank’s Board of Directors and communicated to the Pakistan Stock Exchange on September 15, 2023.
The new exchange company will be set up with a paid-up capital of Rs. 1 billion. As per the information provided in the stock filing, the exchange company will operate as a wholly-owned subsidiary of Meezan Bank Limited. However, the establishment of this subsidiary is subject to approval from the State Bank of Pakistan (SBP) and compliance with other regulatory requirements.
This development comes in the wake of a rigorous crackdown against black market agents last week. Following these actions, the SBP announced its intention to introduce structural reforms in the Exchange Companies sector. As part of these reforms, leading banks involved in foreign exchange business are expected to establish their own Exchange Companies. These companies will cater to the legitimate foreign exchange needs of the general public.
In line with these reforms, the minimum capital requirement for Exchange Companies has been increased from Rs. 200 million to Rs. 500 million. This move is expected to ensure the stability and reliability of these institutions.
Earlier in the same week, United Bank Limited also approved the establishment of an exchange company, indicating a trend among major banks to expand their services in the foreign exchange sector.
The establishment of these exchange companies by leading banks like Meezan Bank Limited is seen as a positive step towards strengthening the foreign exchange sector and providing reliable services to the public.
