SBP Names UBL, HBL and NBP as Systemically Important Banks for 2026
SBP designates UBL, HBL and NBP as Domestic Systemically Important Banks for 2026.
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 central bank announced the designations on Friday, August 21, following its annual assessment of the country’s banking sector. The review used banks’ financial statements for the year ended December 31, 2025.
Three Banks Receive D-SIB Designation
Under the SBP’s D-SIB framework, regulators assess banks according to their size, interconnectedness, substitutability and complexity.
UBL received the highest Bucket D classification. It will face an additional Common Equity Tier-1 (CET-1) capital requirement of 2.5%.
HBL falls into Bucket C and will maintain an additional CET-1 requirement of 1.5%.
NBP has been placed in Bucket B. The bank will face an additional CET-1 capital requirement of 1%.
The new capital requirements will take effect from March 31, 2027.
SBP Strengthens Banking Resilience
The SBP introduced its D-SIB framework in April 2018 and amended it in December 2022. The framework follows international standards while taking Pakistan’s financial and economic conditions into account.
Each year, the central bank conducts a two-step assessment. First, it identifies sample D-SIBs using quantitative and qualitative criteria.
Officials then calculate composite systemic scores to determine which institutions qualify for D-SIB status.
The framework imposes stronger regulatory and supervisory requirements on designated banks. These measures aim to improve their ability to withstand financial shocks and strengthen risk management.
Requirements for Global Banks
The SBP also addressed branches of Global Systemically Important Banks (G-SIBs) operating in Pakistan.
Such branches must maintain additional CET-1 capital against their risk-weighted assets in Pakistan. The applicable rate will follow the requirement set by the Financial Stability Board for each bank’s principal G-SIB.
The measure seeks to ensure that globally significant banking institutions operating in Pakistan maintain appropriate capital buffers.
Focus on Financial Stability
The SBP said the D-SIB designation forms a key part of its supervisory framework. The central bank also reaffirmed its commitment to financial stability and sustainable economic growth.
By identifying institutions that could have a major impact on the wider financial system, the SBP aims to strengthen safeguards against systemic risks.
The 2026 designations therefore place greater capital and supervisory responsibilities on UBL, HBL and NBP as Pakistan’s designated domestic systemically important banks.
