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The State Bank of Pakistan (SBP) announced its list of Systemic Banks Pakistan for 2025 after reviewing bank data as of December 31, 2024. The SBP pursued its Domestic Systemically Important Banks framework, introduced in 2018 and updated in 2022. The relocation puts more specific regulations on the big banks and also serves to bolster financial stability.
The SBP has appointed the National Bank of Pakistan (NBP), United Bank Limited (UBL), and Habib Bank Limited (HBL) as Systemic Banks Pakistan as of 2025. The central bank assigned additional Common Equity Tier 1 capital requirements that take effect from March 31, 2026. National Bank of Pakistan must hold an extra 2.5 percent of CET1 capital. United Bank Limited and Habib Bank Limited must hold an extra 1.5 percent each. These buffers will sit on top of existing capital rules.
The framework uses a two-step assessment. First, a sample of candidate banks is identified using quantitative and qualitative indicators. The final designations are made based on composite systemic scores that measure size, interconnectedness, substitutability, and complexity. The process aligns local practice with international norms and aims to reduce the chance that a failing bank would harm the whole system.
The SBP also confirmed that branches of global systemically important banks operating in Pakistan must maintain extra CET1 capital at rates set by the Financial Stability Board. The requirement will apply to risk-weighted assets booked in Pakistan.
The central bank said further implementation guidance and timelines will be published to help banks plan.
The designation will mandate the named banks to revise capital plans and to coordinate with regulators regarding liquidity and recovery planning. Markets and depositors will monitor how the banks are meeting the new buffers and the impact that capital strategies have on lending and investment.
According to the SBP, the measures will enhance resilience and safeguard depositors and make people more confident in the banking system.
