Faysal Bank Limited, a major Islamic bank in Pakistan, has announced that it will establish an Exchange Company (EC) as a wholly-owned subsidiary. The decision was made by the bank’s Board of Directors and is subject to approval from regulatory authorities. The initial paid-up capital for the EC will be Rs1,000 million. Faysal Bank’s move follows similar announcements from other banks, including Bank Al Habib Limited, MCB Bank Limited, Meezan Bank Limited, and United Bank Limited, who also plan to establish ECs as wholly-owned subsidiaries. The State Bank of Pakistan (SBP) recently introduced reforms in the EC sector to strengthen controls and address the decrease in the value of the rupee. As part of these reforms, leading banks engaged in foreign exchange business are required to establish wholly-owned ECs to serve the foreign exchange needs of the public. The SBP also increased the minimum capital requirement for ECs from Rs200 million to Rs500 million. Faysal Bank’s latest financial results show a consolidated profit before tax of Rs7.66 billion for the first half of 2023, a significant increase compared to the previous year. The bank has also declared an interim cash dividend of Re1 per share.
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