SBP designates UBL, HBL, NBP as D-SIBs for 2026

August 21, 2026 (MLN): The State Bank of Pakistan has designated United Bank Limited, Habib Bank Limited, and National Bank of Pakistan as Domestic Systemically Important Banks (D-SIBs) for 2026, requiring the three lenders to hold additional capital buffers under its D-SIB framework.

The central bank informed that the designation was made under the Framework for Domestic Systemically Important Banks, first published in April 2018 and amended in December 2022, which is aligned with international standards while factoring in the local financial industry and economy.

The framework lays out the methodology for identifying D-SIBs along with enhanced regulatory and supervisory requirements, aimed at strengthening the resilience of systemically important banks against shocks and improving their risk management capacities, according to a press release issued.

SBP said the identification process is carried out annually through a two-step approach: first, sample D-SIBs are shortlisted based on prescribed quantitative and qualitative criteria; then, D-SIBs are designated from within that sample based on composite systemic scores covering size, interconnectedness, substitutability, and complexity.

Based on an assessment of banks' financial statements as of December 31, 2025, the three banks were designated as D-SIBs for 2026 and will need to meet additional Common Equity Tier-1 (CET-1) capital requirements from March 31, 2027, over and above the enhanced supervisory requirements under the framework.

Additionally, branches of Global Systemically Important Banks (G-SIBs) operating in Pakistan will be required to maintain additional CET-1 capital against their risk-weighted assets in the country, at the rate prescribed by the Financial Stability Board for their respective parent G-SIB.

SBP said the D-SIB designation remains a key part of its supervisory framework, reflecting its proactive approach toward identifying and mitigating systemic risks as part of its broader commitment to financial stability and sustainable economic growth.

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