SBP play a pivotal role in ensuring stability of the financial sector. As a central bank and banking supervisor it has been entrusted with responsibilities to “regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest” under the State Bank of Pakistan Act, 1956. Strategic plan “SBP Vision 2020” also emphasizes strengthening the financial stability framework. For that purpose, a separate department i.e. “Financial Stability Department (FSD)” has been formed. Apart from consolidating financial stability issues in FSD, SBP has also initiated working in several new and emerging areas aiming to address financial stability concerns encompassing (a) Designing of financial system stability framework, (b) crises management framework, (c) review and update of consolidated supervision framework, and (d) framework for identification and supervision of D-SIBs in Pakistan. SBP also plays its role in promoting safety and soundness of individual financial institutions; smooth functioning of payment systems and effective resolution of problem institutions