The State Bank of Pakistan has announced the designation of D-SIBs for the year 2019 under the Framework for Domestic Systemically Important Banks (D-SIBs) that was introduced in April 2018.
The framework introduced by State Bank is consistent with the international standards and practices and takes into account the local dynamics. It specifies the methodology for the identification and designation of D-SIBs, enhanced regulatory and supervisory requirements, and implementation guidelines.
These enhanced requirements aim to further strengthen the resilience of the Systemically Important banks against shocks and augment their risk management capacities.
The identification of D-SIBs involves two-step process. In the first step, sample banks are identified each year based on the quantitative and qualitative criteria.