Regulatory Alerts2025-07-30 | BPRD Circular No. 02Added · Updated
Regulatory Framework on Recovery Planning
The State Bank of Pakistan requires all banks, including foreign bank branches and Islamic Banking Institutions, to prepare and maintain comprehensive group-wide recovery plans. These plans must include specific components such as organizational structures, critical functions, recovery triggers, early warning indicators, and a menu of feasible recovery options with quantified impacts on capital and liquidity ratios. Banks must incorporate contingency funding plans into their board-approved recovery plans and align foreign branch plans with head office strategies. The framework outlines detailed supervisory expectations for testing, feasibility, governance, and the submission of these plans to the regulator.
More like this from SBP
SBP published 6 documents in the last 30 days. We email you each new one the day it's published.