Faysal bank to set up EC

KARACHI: Faysal Bank Limited said on Thursday it will set up an exchange company as a wholly-owned subsidiary to offer foreign exchange services.

The bank said in a notice to the Pakistan Stock Exchange (PSX) that its board of directors had approved the establishment of the exchange company with an initial paid-up capital of Rs1 billion.

The exchange company will be subject to the approval and clearance by the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP) and other regulatory compliance requirements, the notice said.

Faysal Bank is the latest among several banks to announce plans to set up exchange companies as subsidiaries, following Bank Al Habib Limited, MCB Bank Limited, Meezan Bank Limited, and United Bank Limited (UBL.KA).

The move comes after the SBP decided to introduce structural reforms in the exchange company sector earlier this month, in a bid to strengthen controls amid the massive fall in rupee’s value in the open market.