KARACHI: The State Bank of Pakistan on Thursday declared the Habib Bank Ltd (HBL), National Bank of Pakistan (NBP) and United Bank Ltd (UBL) as the most important banking institutions in the country under a framework introduced in 2018.

The central bank’s announcement was based on the assessment of three banks’ financials as of Dec 31, 2019 and were designated domestic systemically important banks (D-SIBs) for the year 2020.

The framework introduced by the SBP is consistent with the international standards and practices and takes into account the local dynamics. It specifies the methodology for the identification and designation of D-SIBs, enhanced regulatory and supervisory requirements and implementation guidelines.

“These enhanced requirements aim to further strengthen the resilience of the systemically important banks against shocks and augment their risk management capacities,” said the SBP.

Maple raises stake in Pioneer

Maple Leaf Cement Factory Ltd informed the Pakistan Stock Exchange on Thursday that the company had acquired 24.761 million voting shares of Pioneer Cement at the average rate of Rs94.41 apiece.

The new acquisition takes the MLCF stake in PIOC to 10.9pc.

Insight Securities CEO Zubair Ghulam Hussain said the acquisition was reflection of the confidence of acquirers on the cement industry’s growth and dynamics. “However, only the board of directors of the acquirer would be aware of the real reason behind the extension of a company’s shareholding in another, which would never be known until the buyer chooses to make it public.”

Published in Dawn, September 4th, 2020