The Pakistan Stock Exchange was notified on Monday by the Bank of Punjab (PSX: BOP) that the bank planned to launch an Exchange Company.
According to the stock filing, “Leading Banks have been inspired to establish completely owned Exchange Companies with a registered capital of Rs. 2.5 billion. In light of the lately implemented fundamental changes by SBP in the Exchange Company’s sector. And the challenges posed by the recent depreciation of the Pakistani rupee in the open market.”
Consequently, an initial feasibility report for the establishment of “BOP Exchange Company” was recommended to the Board of The Bank of Punjab in its meeting held on October 28, 2023. Given the market potential and requirements for future expansion.
The notice further stated that the establishment of the firm is contingent to receiving clearance. Also receiving the permission from the Securities and Exchange Commission of Pakistan (SECP). Furthermore, permission from SBP, and other regulatory compliance criteria.
UBL, Bank Al Habib, MCB Bank, Allied Bank, Meezan Bank, have announced the launch of Exchane Companies. Since the central bank’s announcement requiring banks to establish wholly-owned foreign exchange entities.
In conclusion, The BOP has informed the Pakistan Stock Exchange of its plan to introduce an Exchange Company. This is inspired by recent fundamental changes by SBP in the Exchange Company sector and challenges posed by the depreciation of the Pakistani rupee.
An initial feasibility report for “BOP Exchange Company” was recommended. It highlighted the market potential and future expansion requirements.
The establishment is subject to regulatory clearance from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Punjab, and other compliance criteria. Several other banks have also announced the establishment of Exchange Companies. Following the central bank’s requirement for wholly-owned foreign exchange entities.
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