Banking Supervision Department-1 (BSD-1) plays a pivotal role in meeting SBP’s main responsibility of maintaining soundness of the financial system and safeguarding the interest of depositors, thereby ensuring public confidence in the system. It also strives to safeguard interest of stakeholders through continuous supervisory monitoring and prompt intervention, which is the corner stone of supervisory activities under Risk Based Supervision.
The department develops and monitors risk profiles of banks and DFIs, which are updated based on supervisory activities under the risk based approach. The risk profiles are dependent on external environment, inherent risks emanating from significant activities, control / governance functions, liquidity, earnings and capital position. This process enables BSD-1 in early recognition of key risk areas and aids in implementing appropriate corrective actions in regulated institutions.
All the activities including supervisory assessment, information requisitions, monitoring, enforcement and other actions are conducted as per the SBP Risk Based Supervisory Framework. Intensity and frequency of reviews in the supervisory process are a function of rating of the regulated entity. In addition to ensuring compliance of issues highlighted in the supervisory reviews, BSD-1 is empowered to take enforcement actions against regulated institutions based on supervisory assessments. Such enforcement actions may range from imposition of penalties, administrative & financial sanctions and references to concerned law enforcement / prosecution agencies.
Market and Credit Risk specialist division is placed in BSD-1, which on behalf of Banking Supervision Departments (BSDs), monitors industry level information on credit and market risk and feeds the supervisory divisions with key information on emerging risks and supervisory concerns. Further, the department is responsible for reviewing all the matters related to penal actions, monitoring of CRR and SLR and monitoring and preparing reports on fraud instances of all regulated entities of SBP.
BSD-1 works in close coordination with other departments/groups of SBP including Banking Supervision Department-2 (BSD-2), Banking Supervision Department-3 (BSD-3), Financial Stability Department (FSD) and Banking Policy & Regulation Group for performing supervisory assessment.
Following is the list of Financial Institutions allocated to Banking Supervision Department - 1.
| Sr. No. |
Sub-Sr. No. |
Name of Institution |
| Commercial Banks |
| 1 |
1 |
Askari Bank Limited |
| 2 |
2 |
Bank Al-Habib Limited |
| 3 |
3 |
JS Bank Limited |
| 4 |
4 |
National Bank of Pakistan |
| 5 |
5 |
Punjab Provincial Cooperative Bank Limited |
| 6 |
6 |
SAMBA Bank Limited |
| 7 |
7 |
Standard Chartered Bank (Pakistan) Limited |
| 8 |
8 |
Summit Bank Limited |
| 9 |
9 |
The Bank of Punjab |
| 10 |
10 |
Zarai Taraqiati Bank Limited |
| |
| Sr. No. |
Sub-Sr. No. |
Name of Institution |
| Foreign Banks |
| 11 |
1 |
Bank of China Limited |
| 12 |
2 |
Citibank N.A. |
| 13 |
3 |
Deutsche Bank AG |
| 14 |
4 |
Industrial & Commercial Bank of China Limited |
| |
| Development Finance Institutions |
| 15 |
1 |
House Building Finance Company Limited |
| 16 |
2 |
Pak Brunei Investment Company Limited |
| 17 |
3 |
Pak China Investment Company Limited |
| 18 |
4 |
Pak Oman Investment Company Limited |
| 19 |
5 |
Pak Libya Holding Company Limited |
| 20 |
6 |
Pakistan Kuwait Investment Company Limited |
| 21 |
7 |
Pakistan Mortgage Refinance Company Limited |
| 22 |
8 |
PAIR Investment Company Limited |
| 23 |
9 |
Saudi Pak Industrial & Agricultural Investment Company Limited |
| |
Circulars/ Circular Letters of Banking Supervision Department - 1