Banking sector and capital market: NBP, NCCPL ink MoU to expand collaboration

KARACHI: National Bank of Pakistan (NBP) and the National Clearing Company of Pakistan Limited (NCCPL) have signed a memorandum of understanding (MoU) to expand collaboration between the banking sector and capital market.

Through this MoU, NBP aims to drive collaborative innovation across the banking and capital market landscape, reinforcing its commitment to inclusive growth, sustainable finance, and the development of diversified funding avenues for Pakistan’s economic progress.

Under the agreement, NBP will explore several avenues for integration with NCCPL. These include acting as a Financier for Margin Trading, allowing the bank to support investors in purchasing eligible securities in the ready market. The bank may also become a Custodian Clearing Member of NCCPL, which would enable it to facilitate its wealth management customers by providing them access to the securities market, while maintaining custody of their cash and securities.

Rehmat A Hasnie, President & CEO of NBP, emphasised that the agreement will enable the Bank to explore strategic initiatives in margin financing, assess the potential role of becoming a custodian clearing member, and leverage NCCPL’s Capital Gains Tax (CGT) services to enhance its capital and debt market offerings.

Hasnie remarked, “As Pakistan’s national institution, NBP is uniquely positioned to serve as a bridge between the financial system and the real economy. This partnership goes beyond traditional market access -it is about shaping a more resilient, transparent, and investor-friendly financial ecosystem for the country.”

Muhammad Ismail Usuf, Senior Executive Vice President and Group Chief Treasury & Capital Market Group, NBP, said: “This partnership reflects NBP’s commitment to supporting the development of Pakistan’s financial markets. By working closely with NCCPL, we aim to create new opportunities for the investors, improve efficiencies, and strengthen the link between the banking sector and capital markets.”

Imran Ahmed Khan, Deputy CEO of NCCPL, said: “We believe that collaboration with NBP will foster integration of the financial market with capital market ecosystem. With the signing of this MoU, both entities aim to expand capital market participation by enabling bank customers to become investors, contributing to a stronger investor base and higher investor-to-population ratio”.

Under the MoU, NBP will evaluate the use of NCCPL’s capital gains tax (CGT) system, which automates the calculation and withholding of taxes on the disposal of listed equity and debt securities, ensuring greater transparency and compliance.

In addition, it would also explore registering as a Professional Clearing Member (PCM) with the Securities and Exchange Commission of Pakistan (SECP) and NCCPL, allowing it to extend clearing and settlement services to trading-only brokers and their customers.

Copyright Business Recorder, 2025