SBP Designates HBL, UBL, And NBP As Systemically Important Banks For 2026.
✧ GENERATE BRIEFING +
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. Based on annual assessments of financial data as of December 31, 2025, the central bank categorized the lenders into systemic buckets with additional Common Equity Tier-1 (CET-1) capital requirements ranging from 1.0% to 2.5%, taking effect on March 31, 2027. UBL was placed in Bucket D (2.5% additional CET-1), HBL in Bucket C (1.5%), and NBP in Bucket B (1.0%). Furthermore, local branches of Global Systemically Important Banks (G-SIBs) must hold extra CET-1 capital buffers aligned with Financial Stability Board benchmarks.
The State Bank of Pakistan (SBP) has designated Habib Bank Limited (HBL), United Bank Limited (UBL), and National Bank of Pakistan (NBP) as Domestic Systemically Important Banks (D-SIBs) for 2026.
According to the central bank, the three banks will be required to meet additional Common Equity Tier-1 (CET-1) capital requirements ranging from 1.0% to 2.5% with effect from March 31, 2027, in addition to enhanced supervisory requirements under the D-SIB framework. Under the bucket classification, UBL has been placed in Bucket D with a 2.5% additional CET-1 requirement, HBL in Bucket C with a 1.5% requirement, and NBP in Bucket B with a 1.0% requirement.
The designation was made following SBP’s annual assessment of banks based on their audited financial statements as of December 31, 2025.
Under the D-SIB framework, banks are assessed through a two-step process examining factors including size, interconnectedness, substitutability, and complexity. The framework is designed to identify institutions whose financial distress could have a significant impact on Pakistan’s overall financial system and broader economy.
The SBP said the D-SIB framework aligns with international standards while taking into account local conditions in Pakistan’s financial sector and economy.
The additional capital and supervisory requirements are aimed at strengthening the resilience of systemically important banks against financial shocks and augmenting their risk-management capacity.
The central bank reiterated that the annual designation of D-SIBs is a key element of its supervisory framework, reflecting its proactive approach to identifying and mitigating systemic risks while maintaining national financial stability.
Additionally, branches in Pakistan of foreign banks classified globally as Global Systemically Important Banks (G-SIBs) will be required to maintain additional CET-1 capital against their risk-weighted assets at rates prescribed by the Financial Stability Board (FSB) for their respective parent entities.
