# SBP doubles banks' minimum capital to Rs 20 billion, deadline 31 December 2030

Source: Searchable (https://searchable.pk/news/business/sbp-doubles-banks-minimum-capital-to-rs-20-billion-deadline-31-december-2030)
Type: News article
Author: Searchable Editorial
Published: 29 Oct 2026
Updated: 29 Oct 2026
Retrieved: 29 Oct 2026

> Local banks must hold Rs 20 billion instead of Rs 10 billion; foreign branches and DFIs face new floors too. Analysts expect no cut in dividends.

The **State Bank of Pakistan (SBP)** has doubled the **minimum capital requirement (MCR)** for banks operating in Pakistan, Business Recorder reported on Thursday. Locally incorporated banks, including Islamic banking subsidiaries, must now hold at least **Rs 20 billion**, up from Rs 10 billion. Existing banks and development finance institutions (DFIs) have until **31 December 2030** to comply.

## New minimum capital rules at a glance

| Institution | New minimum |
|---|---|
| Locally incorporated banks (incl. Islamic banking subsidiaries) | Rs 20 billion (was Rs 10 billion) |
| Foreign bank branches, up to 5 branches | Rs 5 billion assigned capital, net of losses |
| Foreign bank branches, 6 to 50 branches | Rs 10 billion |
| Development finance institutions (DFIs) | Rs 10 billion |
| Deadline for existing banks and DFIs | 31 December 2030 |

The SBP said the increase reflects rising operating costs and the cost of running financial institutions "on sustainable basis".

## What counts towards the Rs 20 billion

Banks may now count **statutory reserves** created under Section 21 of the Banking Companies Ordinance 1962 towards the MCR, on top of the items already allowed under BPRD Circular No. 06 of 2013. Those reserves cannot be withdrawn without the SBP's prior approval.

## Who feels it

Big listed banks are comfortably above the new floor. AHL Research estimates the banks it covers hold capital buffers averaging about Rs 50 billion and does not expect any material change in **dividend payouts**. The pressure falls on smaller banks and new entrants with thin reserves, which may need fresh capital, a merger or a rights issue over the next four years.

## What it means for depositors

Nothing changes for your account. The MCR is the bank's own money, a cushion that absorbs losses before depositors are touched, so a higher floor makes the system sturdier. Your profit rate still follows the SBP [policy rate](/data/sbp-policy-rate) (12%) and [KIBOR](/data/kibor-1y). If you are comparing savings options, the [National Savings profit calculator](/tools/finance/national-savings-calculator) shows what government schemes pay against a bank deposit.

## Frequently asked questions

**What is the new minimum capital requirement for banks in Pakistan?**

Rs 20 billion for locally incorporated banks, including Islamic banking subsidiaries, up from Rs 10 billion. DFIs need Rs 10 billion. Existing banks and DFIs have until 31 December 2030, Business Recorder reported.

**Is my money in the bank affected?**

No. The rule is about how much of their own capital banks must hold. It makes banks better able to absorb losses and does not change deposits, profit rates or charges.

## Sources

- SBP doubles MCR for banks (Business Recorder): https://www.brecorder.com/news/40446432/sbp-doubles-mcr-for-banks

How to cite: "SBP doubles banks' minimum capital to Rs 20 billion, deadline 31 December 2030", Searchable, 29 Oct 2026, https://searchable.pk/news/business/sbp-doubles-banks-minimum-capital-to-rs-20-billion-deadline-31-december-2030