SBP designates NBP, HBL, UBL as important banks

August 29, 2025 (MLN):The State Bank of Pakistan (SBP) has declared the designation of National Bank of Pakistan (NBP), Habib Bank Limited (HBL), and United Bank Limited (UBL) as Domestic Systemically Important Banks (D-SIBs) for 2025 under the framework introduced in April 2018 and amended in December 2022.

The framework, consistent with international standards and tailored to local circumstances, outlines the methodology for identifying D-SIBs, enhanced regulatory and supervisory requirements, and implementation guidelines aimed at strengthening banks’ resilience and risk management.

The identification process is conducted annually in two steps: first, sample D-SIBs are shortlisted using quantitative and qualitative criteria; second, final designations are made based on systemic scores related to size, interconnectedness, substitutability, and complexity.

Based on banks’ financial statements as of December 31, 2024, SBP has designated three banks as D-SIBs for 2025: National Bank of Pakistan, United Bank Limited, and Habib Bank Limited.

These banks are required to maintain additional Common Equity Tier-1 (CET-1) capital from March 31, 2026, as follows:

• National Bank of Pakistan – 2.5% (Bucket D)

• United Bank Limited – 1.5% (Bucket C)

• Habib Bank Limited – 1.5% (Bucket C)

In addition, branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan must maintain CET-1 capital against risk-weighted assets at rates prescribed by the Financial Stability Board.

SBP stated that the designation of D-SIBs remains a key element of its supervisory framework, reflecting its commitment to financial stability and systemic risk mitigation.

 Copyright Mettis Link News