The State Bank of Pakistan (SBP) has designated United Bank Limited (UBL), Habib Bank Limited (HBL), and National Bank of Pakistan (NBP) as Domestic Systemically Important Banks (D-SIBs) for 2026.
The designation has been made under the SBP’s Framework for Domestic Systemically Important Banks, introduced in April 2018 and amended in December 2022.
The framework is aligned with international standards while also taking into account Pakistan’s economic and financial sector conditions.
It sets criteria for identifying systemically important banks, along with enhanced regulatory and supervisory requirements aimed at strengthening their ability to withstand financial shocks and improving their risk management capabilities.
The SBP conducts the D-SIB assessment every year through a two-stage process. Initially, banks are shortlisted as potential D-SIBs based on quantitative and qualitative criteria. They are then assessed on their systemic importance using factors including size, interconnectedness, substitutability and complexity.
For the 2026 assessment, the central bank reviewed banks’ financial statements as of December 31, 2025. Based on their composite systemic scores, three banks were designated as D-SIBs.
Under the framework, the banks will be required to meet additional Common Equity Tier-1 (CET-1) capital requirements from March 31, 2027, in addition to enhanced supervisory requirements.
UBL, placed in Bucket D, will be required to maintain an additional CET-1 capital buffer of 2.5%. HBL, classified in Bucket C, will have an additional requirement of 1.5%, while NBP, placed in Bucket B, will need to maintain an additional 1.0%.
The SBP also said branches in Pakistan of Global Systemically Important Banks (G-SIBs) will be required to maintain additional CET-1 capital against their risk-weighted assets in Pakistan at the rate prescribed by the Financial Stability Board for their respective parent G-SIBs.
The central bank said the designation of D-SIBs forms an important part of its supervisory framework and reflects its efforts to identify and mitigate systemic risks while strengthening financial stability and supporting sustainable economic growth.
