SBP Introduces New Regulatory Framework for Exchange Companies
KARACHI: The State Bank of Pakistan (SBP) has announced a new regulatory framework for exchange companies, set to take effect on January 1, 2025, ARY News reported. The updated guidelines aim to enhance transparency, strengthen investor confidence, and align exchange companies with international standards.
Key Features of the Framework
- Paid-Up Capital Requirements:
- The minimum paid-up capital has been raised to Rs. 1 billion, with phased implementation:
- Rs. 600 million by December 2025.
- Rs. 800 million by December 2026.
- Full compliance of Rs. 1 billion by 2027.
- The minimum paid-up capital has been raised to Rs. 1 billion, with phased implementation:
- Regulatory Reserves:
- Companies must maintain 15% of their regulatory reserves as cash security with SBP.
- Approval for Transactions:
- Shareholders and directors require SBP approval to withdraw funds or secure loans.
- Financing is restricted to vehicle-related loans only.
- Reporting Obligations:
- Companies must submit detailed reports, returns, and regulatory reserve documentation to the SBP for compliance monitoring.
The SBP highlighted that these measures will foster greater accountability and trust in exchange companies.
Revamped eCIB System Launch
Coinciding with the framework rollout, the SBP will launch a new version of the Electronic Credit Information Bureau (eCIB) system V2, also effective January 1, 2025.
About eCIB
The Credit Information Bureau (CIB) was established in 1992 to support credit risk management and a stable financial ecosystem. The eCIB system, introduced in 2003, enables online reporting and credit assessments for over 4 million borrowers across 100+ institutions.
Key Enhancements in eCIB V2
- Improved efficiency and reliability through advanced servers and encryption technologies.
- Broader data collection, removing minimum reporting thresholds.
- Enhanced decision-making support for financial institutions, expanding access to credit for SMEs, agriculture, and consumer finance sectors.
The new regulatory framework and eCIB V2 demonstrate the SBP’s commitment to modernizing Pakistan’s financial infrastructure while ensuring transparency and financial stability.
