Askari Bank Limited has announced the establishment of an Exchange Company (EC) as a wholly-owned subsidiary.
The subsidiary of Fauji Foundation has become the eighth bank to make such an announcement.
Before this, Habib Metropolitan Bank, Bank Alfalah, Faysal Bank Limited (FABL), Bank Al Habib Limited (BAHL), MCB Bank Limited, Meezan Bank Limited and United Bank Limited (UBL) have announced setting up ECs.
“The Board of Directors of Askari Bank Limited (AKBL) in its meeting held on October 27, 2023, has approved the establishment of an EC with an authorized share capital of Rs1,000 million,” read the notice sent to the Pakistan Stock Exchange on Friday.
The establishment of a wholly owned subsidiary of Askari Bank is subject to approval and clearance by the State Bank of Pakistan (SBP), the Securities & Exchange Commission of Pakistan (SECP) and completion of other regulatory compliance requirements.
It is to be noted that the SBP decided to introduce structural reforms in the EC sector last month following the massive decrease in the exchange rate of rupee against the dollar in the open market.
In light of these reforms, commercial banks engaged in foreign exchange business started the process of establishing wholly-owned EC to cater to the needs of the public at large.
