KARACHI: The State Bank of Pakistan (SBP) has designated National Bank of Pakistan (NBP), United Bank Limited (UBL), and Habib Bank Limited (HBL) as Domestic Systemically Important Banks (D-SIBs) for 2025, following its annual assessment under the D-SIBs framework.
The central bank said the classification is based on banks’ size, interconnectedness, substitutability, and complexity as of December 31, 2024. D-SIBs are subject to stricter regulatory oversight to ensure they remain resilient against financial shocks and continue to support economic stability.
Under the new requirements, NBP has been placed in bucket D with an additional 2.5 percent Common Equity Tier-1 (CET-1) capital requirement, while UBL and HBL are placed in bucket C, each required to maintain an extra 1.5 percent CET-1 capital from March 31, 2026.
SBP also announced that branches of Global Systemically Important Banks (G-SIBs) operating in Pakistan will need to hold additional CET-1 capital buffers in line with thresholds set by the Financial Stability Board.
The designation of D-SIBs, according to SBP, reflects its proactive approach to identifying and mitigating systemic risks in the banking sector, a key step in safeguarding the financial system and supporting sustainable growth.
Copyright Business Recorder, 2025
