The Board of Directors of MCB Bank Limited has provided its endorsement for the establishment of an Exchange Company with an initial paid-up capital of Rs 1.0 billion, which will function as a wholly-owned subsidiary of the bank.
In an official statement submitted to the Pakistan Stock Exchange on Monday, it was disclosed, “The Board of Directors of the Bank, through a resolution dated September 15, 2023, has approved the establishment of an Exchange Company with PKR 1.0 billion as Initial Paid-up Capital, as a wholly-owned subsidiary of the Bank, subject to approval by the State Bank of Pakistan and other relevant regulatory authorities.”
This strategic initiative by MCB Bank represents a proactive response to recent structural reforms initiated by the State Bank of Pakistan. Sana Tawfiq, an expert at Arif Habib Limited, commented on this development, highlighting that the new foreign exchange company will commence its operations with an initial capital infusion of Rs 1.0 billion. This aligns with the regulatory reforms set in motion by the State Bank of Pakistan, which actively encourages the formation of exchange companies by banks. These reforms have been designed with the overarching goal of augmenting the efficiency and resilience of Pakistan’s foreign exchange market.
MCB Bank’s decision to establish a wholly-owned subsidiary exchange company is indicative of the banking sector’s adaptability and responsiveness to evolving regulatory frameworks. By aligning with the State Bank of Pakistan’s vision for a more robust foreign exchange market, MCB Bank aims to contribute to the enhancement of financial stability and efficiency within Pakistan’s economic landscape. The establishment of this exchange company is expected to fortify the bank’s position as a pivotal player in the country’s financial sector, fostering growth and innovation in line with evolving industry dynamics.
Latest posts by News Desk (see all)
- Oil Prices down amid Geo-Political Uncertainty - November 1, 2023
- Govt to borrow PKR8.5 trillion in Bond Auction till Jan-2024 - November 1, 2023
- Nishat Chunian Ltd: 1QFY24 profit rises 13 percent to PKR 500mn - October 31, 2023