The State Bank of Pakistan (SBP) has designated National Bank of Pakistan, United Bank Ltd, and Habib Bank Ltd as Domestic Systemically Important Banks (D-SIBs) for 2024. This designation is based on the Framework for Domestic Systemically Important Banks, which aims to strengthen the resilience of systemically important banks against shocks and enhance their risk management capacities.
The identification of D-SIBs involves a two-step process, considering quantitative and qualitative criteria. The designated banks will have to follow additional Common Equity Tier-1 (CET-1) capital requirements and implement enhanced supervisory requirements.
Additionally, branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan will be required to hold additional CET-1 capital against their risk-weighted assets in Pakistan.
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