By Our Correspondent
KARACHI – The State Bank of Pakistan (SBP) has designated three banks—National Bank of Pakistan, United Bank Limited, and Habib Bank Limited—as Domestic Systemically Important Banks (D-SIBs) for the year 2025.
Read also: SBP makes public annual financial statements for fy 2024-25
The decision has been made under the SBP’s framework for D-SIBs, first issued in 2018 and revised in 2022, which follows global standards while considering Pakistan’s financial sector.
D-SIBs are identified each year through a detailed assessment of banks based on their size, interconnectedness, substitutability, and complexity. These banks are required to meet higher capital and risk management standards to ensure resilience against shocks.
According to SBP’s review of financial statements as of December 31, 2024, NBP falls in Bucket D with an additional CET-1 requirement of 2.5%, while UBL and HBL fall in Bucket C with a requirement of 1.5% each.
Branches of Global Systemically Important Banks (G-SIBs) operating in Pakistan will also need to maintain extra capital as prescribed by the Financial Stability Board.
The SBP said the move is aimed at safeguarding financial stability and reducing systemic risks in the economy.
About the Author
