SBP designates Domestic Systemically Important Banks for year 2026

KARACHI, Aug 21 (APP):The State Bank of Pakistan (SBP), Friday, announced the designation of D-SIBs for the year 2026 in accordance with Framework for ‘Domestic Systemically Important Banks (D-SIBs)’.

The central bank, on the basis of the process specified in the D-SIBs framework and thorough assessment, designated United Bank Limited, Habib Bank Limited, and National Bank of Pakistan as D-SIBs for the year 2026, said a statement issued here.

The designated banks are required to comply with additional Common Equity Tier-1 (CET-1) capital requirements as well as enhanced supervisory requirements set forth in the framework, it added.

The SBP framework specifies the methodology for the identification of D-SIBs, enhanced regulatory and supervisory requirements and implementation guidelines for D-SIBs, aimed at further strengthening the resilience of SIBs against shocks and augmenting their risk management capacities.

Under the framework, the identification of D-SIBs is carried out on an annual basis via a two-step process; identification of the Sample D-SIBs as per prescribed quantitative and qualitative criteria, and designation of D-SIBs based on institutions’ composite systemic scores in terms of their size, interconnectedness, substitutability and complexity.

SBP, on the basis of annual assessment of banks and their financial statements as of December 31, 2025, designated three banks as D-SIBs for the year 2026. These designated banks need to comply with the additional Common Equity Tier-1 (CET-1) capital requirements from 1% to 2.5% with effect from March 31, 2027, in addition to enhanced supervisory requirements. Additional CET-1 requirement for UBL in Bucket D is 2.5%, HBL Bucket C 1.5% and NBP in Bucket B is 1%.

The SBP also directed the bank branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan to maintain additional CET-1 capital against their risk-weighted assets in Pakistan at the rate prescribed by the Financial

Stability Board for their respective principal G-SIB.

The SBP, reiterating commitment to ensure financial stability and support sustainable growth in the economy termed the designation of D-SIBs as one of the key elements of the supervisory framework, reflecting SBP’s proactive approach to identification and mitigation of systemic risks.