SBP designates HBL, UBL, NBP as systemically important banks for 2026
The State Bank of Pakistan (SBP) has designated Habib Bank Limited, United Bank Limited, and National Bank of Pakistan as Domestic Systemically Important Banks (D-SIBs) for 2026. These designated banks need to comply with the following additional Common Equity Tier-1 (CET-1) capital requirements with effect from March 31, 2027, in addition to enhanced supervisory requirements outlined in the…
The State Bank of Pakistan (SBP) has announced that Habib Bank Limited, United Bank Limited, and National Bank of Pakistan will be classified as Domestic Systemically Important Banks (D-SIBs) for 2026. This designation comes with additional Common Equity Tier-1 (CET-1) capital requirements starting from March 31, 2027, along with more stringent supervisory measures as per the D-SIBs framework.
Furthermore, branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan will also be mandated to maintain extra CET-1 capital against their risk-weighted assets in Pakistan, as determined by the Financial Stability Board.
The designation of D-SIBs for 2026 was made by the SBP in line with the 'Domestic Systemically Important Banks (D-SIBs)' framework published in April 2018 and updated in December 2022. This framework is in harmony with global standards and takes into account the unique characteristics of Pakistan's financial industry and economy.
The purpose of the framework is to outline the process for identifying D-SIBs, enhanced regulatory and supervisory requirements, and guidelines for implementation. The SBP carries out an annual review of banks using a two-step process. First, Sample D-SIBs are identified based on specific quantitative and qualitative criteria. Then, D-SIBs are chosen from the sample group based on a composite systemic score taking into account factors like size, interconnectedness, substitutability, and complexity.
The SBP recently assessed the banks based on their financial statements as of December 31, 2025. As a result of this assessment, Habib Bank Limited, United Bank Limited, and National Bank of Pakistan were designated as D-SIBs for 2026. The State Bank of Pakistan is committed to maintaining financial stability and promoting sustainable growth, and the D-SIB designation plays a crucial role in its supervisory framework, reflecting the central bank's proactive approach towards identifying and mitigating systemic risks.
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