The Board of Directors of Meezan Bank Limited (PSX: MEBL) has approved the establishment of an exchange company with Rs. 1 billion as paid-up capital, the commercial bank informed the Pakistan Stock Exchange on Friday.

According to a stock filing, the exchange company will be categorized as a 100 percent owned subsidiary of MEBL subject to approval by the State Bank of Pakistan (SBP) and other regulatory compliances.

Earlier this week, United Bank Limited (PSX: UBL) also approved the establishment of an exchange company.

These developments come after last week’s relentless crackdown against black market agents, and the subsequent announcement by SBP to introduce structural reforms in the Exchange Companies’ sector. As part of these reforms, leading banks actively engaged in foreign exchange business will establish Exchange Companies to cater to the legitimate foreign exchange needs of the general public.

The minimum capital requirement for Exchange Companies has been increased from Rs. 200 million to Rs. 500 million.

Source: Pro Pakistani