December 13, 2022 (MLN): The State Bank of Pakistan (SBP) has reduced the Capital Requirements (CAR) buffer by 0.5% for Domestic Systemically Important Banks (D-SIBs) for the year 2022 under the Framework for D-SIBs, the latest notification issued by SBP informed.
D-SIBs involve a two-step identification process, in the first step, sample banks are identified each year based on quantitative and qualitative criteria. In the second step, D-SIBs are designated from among the sample banks on the basis of institutions’ systemic scores in terms of their size, interconnectedness, substitutability, and complexity.
In line with D-SIBs Framework, SBP carried out the annual assessment on the basis of financials of the end of December 2022. As per this assessment, three banks viz. Habib Bank Ltd., National Bank of Pakistan, and Meezan Bank Ltd. have been designated as D-SIBs for the year 2022.
These banks will continue to follow enhanced supervisory requirements as well as the following additional common equity tier-1 capital (CET-1) requirements:
BUCKET
Name of Institution
Additional CET-1 Requirement for Bucket
D
None
2.5%
C
National Bank of Pakistan (NBP) and Habib Bank Ltd (HBL)
