SBP designates HBL, UBL, NBP as systemically important banks for 2026

The State Bank of Pakistan (SBP) has designated Habib Bank Limited, United Bank Limited, and National Bank of Pakistan as Domestic Systemically Important Banks (D-SIBs) for 2026.

These designated banks need to comply with the following additional Common Equity Tier-1 (CET-1) capital requirements with effect from March 31, 2027, in addition to enhanced supervisory requirements outlined in the D-SIBs framework, said SBP on Friday.

Moreover, bank branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan 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 principal G-SIB, it added.

SBP names NBP, UBL, HBL as D-SIBS for 2025

The central bank announced the designation of D-SIBs for the year 2026 in accordance with the Framework for ‘Domestic Systemically Important Banks (D-SIBs)’ published in April 2018 and amended in December 2022, read a statement.

The framework introduced by SBP is consistent with international standards and duly takes into account the local circumstances of the financial industry and economy. It specifies the methodology for the identification of D-SIBs, enhanced regulatory and supervisory requirements and implementation guidelines for D-SIBs. The enhanced requirements aim to further strengthen the resilience of systemically important banks against shocks and augment their risk management capacities. 

Under the framework, the identification of D-SIBs is carried out on an annual basis via a two-step process. In the first step, Sample D-SIBs are identified according to prescribed quantitative and qualitative criteria.  In the second step, D-SIBs are designated from amongst the sample D-SIBs based on institutions’ composite systemic scores in terms of their size, interconnectedness, substitutability and complexity.

SBP carried out an annual assessment of banks based on their financial statements as of December 31, 2025.

Following the assessment, United Bank Limited, Habib Bank Limited, and National Bank of Pakistan were designated as D-SIBs.

“The SBP remains committed to ensuring financial stability and support sustainable growth in the economy. The designation of D-SIBs is one of the key elements of the supervisory framework and reflects SBP’s proactive approach to identification and mitigation of systemic risks,” it said.