Bank Al Habib to establish Exchange Company

September 22, 2023

The Board of Directors of Bank AL Habib Limited (PSX: BAHL) has granted approval for the establishment of an Exchange Company, starting with an initial paid-up capital of up to Rs1 billion, according to a disclosure on the Pakistan Stock Exchange (PSX) today.

This exchange company will function as a wholly owned subsidiary of the bank. However, the board’s decision is contingent upon clearance and approval from the State Bank of Pakistan (SBP), as well as the fulfillment of other regulatory prerequisites. This move follows the SBP’s introduction of reforms, urging banks engaged in foreign exchange operations to establish wholly owned Exchange Companies (ECs) to better serve the legitimate foreign exchange requirements of the public. This initiative seeks to streamline and restructure various ECs into a single category with a clearly defined mandate. Previously, MCB Bank Limited, Meezan Bank Limited, and United Bank Limited (PSX: UBL) have also made the decision to establish their own exchange companies.