KARACHI: The State Bank of Pakistan (SBP) has made amendment in Domestic Systemically Important Banks (D-SIBs) Framework.
According to SBP, in view of developments over the last few years on international as well as domestic front, the requirement of Higher Loss Absorbency (HLA) capital surcharge for designated D-SIBs in the form of additional Common Equity Tier 1 (CET1) has been revised. Accordingly, the relevant Para 4.1.2 of Domestic Systemically Important Banks Framework has been revised.
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As per revised para, the HLA capital surcharge for designated D-SIBs, based on the bucketing approach will be 2.5 percent Additional CET1 Requirement for Bucket “D”, 1.5 percent for Bucket “C”, some 1 percent for Bucket “B” and 0.5 percent Additional CET1 Requirement for Bucket “A”.
All other instructions and requirements as contained in the D-SIBs framework will remain unchanged.
Copyright Business Recorder, 2022
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