Allied Bank to Set Up Exchange Company

Following the example of a number of other commercial banks, Allied Bank Limited (ABL) is also set to establish an Exchange Company. In a notice to the Pakistan Stock Exchange (PSX), ABL announced that Allied Bank Limited (ABL) its Board of Directors through circular resolution has approved the establishment of an Exchange Company with an initial paid-up capital of Rs. 1,000 million. The establishment of the company is subject to the approval/clearance by the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan, and the completion of other regulatory compliance requirements. The notice also mentioned that the Exchange Company will be a wholly-owned subsidiary of ABL. Earlier this month, the central bank announced a number of structural reforms in the Exchange Companies’ sector. As part of these reforms, leading banks actively engaged in foreign exchange business will establish wholly owned Exchange Companies to cater to the legitimate foreign exchange needs of the general public. Since the central bank’s announcement, United Bank Limited, Bank Al Habib, MCB Bank, and Meezan Bank have all announced the establishment of Exchange Companies.