State Bank Of Pakistan Designates Domestic Systemically Important Banks
Rukhshan Mir (@rukhshanmir) Published June 14, 2018 | 08:44 PM
State Bank of Pakistan (SBP) has announced the designation of Domestic Systemically Important Banks under D-SIBs framework that was introduced in April 2018.
.:KARACHI, (UrduPoint / Pakistan Point News - 14th Jun, 2018 ) : State Bank of Pakistan (SBP) has announced the designation of Domestic Systemically Important Banks under D-SIBs framework that was introduced in April 2018.
The D-SIBs framework as introduced by State Bank is consistent with the international standards and practices and takes into account the local dynamics.
It specifies the methodology for identification and designation of D-SIBs, enhanced regulatory and supervisory requirements, and implementation guidelines, said SBP statement on Thursday.
These enhanced requirements aim to further strengthen the resilience of big banks towards shocks and augment their risk management capacities.
The identification of D-SIBs involves two-step process. In the first step, sample banks are identified each year based on the quantitative and qualitative criteria.
In the second step, on the basis of institutions' systemic importance score as determined by their size, interconnectedness, substitutability, and complexity; D-SIBs are designated from among the sample banks.
On the basis of the designation criteria, State Bank has designated Habib Bank Limited , National Bank of Pakistan , and United Bank Limited as D-SIBs. These banks will be required to follow enhanced supervisory and regulatory requirements, including the Higher Loss Absorbency Capital surcharge in the form of additional core equity tier-1 capital . The HBL will maintain CET1of 2 percent while NBP and UBL will maintain additional CET1 of 1.5 percent.
Besides these local banks, the branches of Global-Systemically Important Banks (G-SIBs) operating in Pakistan will hold additional CET1 capital against their risk-weighted assets in Pakistan at the rate as applicable on the respective G-SIB.
The bank designated as D-SIB will be required to meet enhanced supervisory and regulatory requirements by end of March 2019.
Related Topics
Recent Stories
Project Director SFERP for early completion of road work before forthcoming mons ..
Spain vows to block BBVA's hostile bid for rival bank
Bank of England holds rate at 16-year high, signals looming cut
London, Frankfurt hit record highs on rate-cut hopes
Entire road work completed before forthcoming monsoon: Kanasaro
Crespo-Kewell Champions League rivalry renewed in Asian final
Bank of England holds rate at 16-year high, signals looming cut
SBP injects Rs 393.75 billion into market
Rupee sheds 10 paisa against US dollar
Federal Ombudsman' regional office holds open court at Paharpur Tehsil
Technological advancements essential for driving country's development: Shaza
NEPRA concludes hearing into KE petition for fuel cost variation
More Stories From Pakistan
-
CDA chairman directs timely collection of auction payments
10 minutes ago -
Rs 51.72b being spent on 82 development projects in Muzaffargarh
10 minutes ago -
Attack on security institutions was condemnable act: Shafqat Shah
10 minutes ago -
New era of development to begin in Mansehra in next 5 years: Advisor
10 minutes ago -
Project Director SFERP for early completion of road work before forthcoming monsoon
5 minutes ago -
Chairman Senate sees off first flight intended pilgrims
20 minutes ago
-
PPP leader condemns May 9th attack, calls it "Heinous Conspiracy to Spread Fascism"
20 minutes ago -
Fire at Lahore airport disrupts flight operations
30 minutes ago -
Course participants from armed forces' officers visit IIUI new campus
40 minutes ago -
Mayor pushes for completion of development schemes on priority basis
40 minutes ago -
Entire road work completed before forthcoming monsoon: Kanasaro
6 minutes ago -
Chairman PRCS delivers recommendations at IFRC meeting
40 minutes ago