{
  "id": 7439767,
  "title": "Banking sector review: SBP expects uptick in credit demand",
  "url": "https://urgent.news/2026/09/15/banking-sector-review-sbp-expects-uptick-in-credit-demand",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-15T01:05:40.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40439518/banking-sector-review-sbp-expects-uptick-in-credit-demand"
  },
  "original_language": "en",
  "account": "Karachi, Pakistan - The State Bank of Pakistan (SBP) has released its Mid-Year Performance Review for the banking sector in the first half of 2026. The review anticipates a steady performance for the banking sector throughout the second half of 2026 (H2CY26) with an expected uptick in credit demand. This optimism is driven by contained inflation, currency stability, and ongoing economic recovery. The SBP outlines that the banking sector’s balance sheet expanded by 9.1 percent, primarily due to investments in government securities. Advances across both public and private sectors also rose during H1CY26. Notably, long-term financing for SMEs continued to increase, and mortgage loans gained traction due to the government's subsidized scheme. Banks managed to mobilize additional deposits of Rs3,673 billion during this period. The credit risk of the banking sector did not raise significant concerns regarding financial stability. The non-performing loans to loans ratio decreased to 5.5 percent in June-2026 (down from 6.1 percent in December-2025). Provisioning coverage ratio improved to 110.2 percent in June-2026 from 107.7 percent in December-2025. However, the Return on Asset (ROA) and Return on Equity (ROE) softened to 1.1 percent and 19.0 percent respectively, due to moderate earnings growth. Despite increased stress in the equity market driven by geopolitical tensions in the Middle East, the banking sector remains solvent and resilient. The sector’s solvency position remains strong with a Capital Adequacy Ratio (CAR) of 19.6 percent. The latest macro stress tests indicate that even severe macroeconomic shocks over a two-year period would not significantly impact the banking sector.",
  "summary": "KARACHI: The State Bank of Pakistan (SBP) said on Monday that the banking sector’s performance is expected to maintain steady momentum during the second half of CY26, with credit demand likely to increase amid contained inflation, currency stability and continued economic recovery. The SBP on Monday issued the Mid-Year Performance Review (The Review) of the Banking Sector for the first half of…",
  "key_points": [],
  "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."
}