{
  "id": 16975878,
  "title": "SBP doubles MCR for banks",
  "url": "https://urgent.news/2026/10/28/sbp-doubles-mcr-for-banks",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-28T23:31:10.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40446432/sbp-doubles-mcr-for-banks"
  },
  "original_language": "en",
  "account": "Karachi: The State Bank of Pakistan (SBP) has made a significant change to the Minimum Capital Requirement (MCR) for banks operating in Pakistan. The bank has doubled the MCR from Rs10 billion to Rs20 billion for new and existing banks, including Islamic banking subsidiaries and foreign bank branches. This increase is due to rising operating costs associated with establishing and maintaining financial institutions on a sustainable basis. Foreign banks with up to five branches in Pakistan must maintain a minimum assigned capital of Rs5 billion, while those with 6 to 50 branches must maintain Rs10 billion. Development finance institutions (DFIs) also face an MCR of Rs10 billion. Existing banks and DFIs will need to meet the enhanced MCR by December 31, 2030. Statutory reserves created in line with Section 21 of the Banking Companies Ordinance 1962 can be included in the MCR, provided prior approval from the SBP is obtained. According to Arif Habib Limited's research, covered listed banks will retain substantial capital buffers, averaging around Rs50 billion, and do not anticipate any significant impact on dividend payouts. However, the revised requirements could raise capital needs, particularly for new banks, especially smaller ones with limited accumulated statutory reserves.",
  "summary": "KARACHI: The State Bank of Pakistan (SBP) has announced a 100 percent increase in the Minimum Capital Requirement (MCR) for new and existing banks operating in Pakistan, citing rising operating costs associated with establishing and running financial institutions on a sustainable basis. The SBP has increased the MCR for locally operating banks including Islamic banking subsidiaries of banks from…",
  "key_points": [
    "State Bank of Pakistan doubles MCR from Rs10 billion to Rs20 billion.",
    "New and existing banks, including Islamic subsidiaries and foreign branches, affected.",
    "MCR deadline of December 31, 2030, with statutory reserves allowed with SBP approval."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}