SBP issues guidelines on core information requirements for resolution planning

September 30, 2025 (MLN): The State Bank of Pakistan (SBP) has issued guidelines on core information requirements for resolution planning, aimed at strengthening the financial stability regime for distressed banks, according to a circular issued to the President, Chief Executive, all banks, MFBs, and DFIs.

Under the circular dated September 29, 2025, the SBP has designated itself as the resolution authority for banking companies under section 3A of the Banking Companies Ordinance (BCO), 1962, following recent amendments.

The Financial Institutions Resolution Department (FIRD) has been established to oversee the resolution of problem banks, Microfinance Banks (MFBs), and Development Finance Institutions (DFIs).

Resolution planning is considered an essential pre-requisite for preparing in advance for an orderly resolution of distressed banks, the circular states.

The timely provision of relevant information and data is critical input for preparation of resolution plans.

"Banks shall designate a senior level official, preferably the Chief Risk Officer (CRO) or Chief Financial Officer (CFO), under intimation to FIRD, who shall be responsible for internal coordination and submission of information as well as coordination with SBP on all resolution planning related matters," the circular reads.

In accordance with the guidelines, banks are required to prepare the first set of required information based on their position as of December 31, 2025, and send confirmation to SBP by April 30, 2026.

Banks have also been advised to update their required information at least annually or more frequently to reflect any changes in their business operations, group structure, or material entities.

SBP may require all or any specific bank(s) to submit the required information on a periodical basis or as and when required, the circular added.

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