The National Institute of Banking and Finance (NIBAF) recently organized a specialized two-day training session for the 27th batch of the State Bank Officers Training Scheme (SBOTS-27), focusing on Basel III regulatory frameworks and problem bank management. Held from August 6 to August 7, 2025, at NIBAF’s Islamabad campus, the program was led by Syed Jahangir Shah, Director of the Financial Institutions Regulation Department (FIRD) at the State Bank of Pakistan.
The training was designed to equip newly inducted State Bank officers with an in-depth understanding of the Basel III capital adequacy framework and its application within Pakistan’s banking sector. Basel III, a global regulatory standard, strengthens bank capital requirements by introducing more rigorous risk management processes, leverage ratios, and liquidity guidelines. The sessions also examined the measures and strategies used by regulators to address challenges faced by problem banks, ensuring stability and resilience in the financial system.
Over the course of the program, participants engaged in interactive discussions and case-based learning. The module on Basel III covered topics such as minimum capital requirements, capital buffers, stress testing, and the role of Tier 1 and Tier 2 capital in maintaining a healthy banking environment. Real-world examples helped participants understand how these international standards are tailored to fit Pakistan’s banking landscape, particularly in the context of emerging economic challenges and evolving financial risks.
The second component of the training focused on problem bank management — a critical area for regulators tasked with safeguarding depositor interests and preventing systemic risks. Officers explored the early warning indicators of bank distress, the process of regulatory intervention, resolution mechanisms, and the importance of strong corporate governance in maintaining institutional health.
Trainer Syed Jahangir Shah emphasized the importance of equipping central bank officers with both the technical knowledge and analytical skills necessary to respond to complex regulatory issues. He highlighted that the integration of global standards like Basel III with domestic oversight practices is essential for maintaining confidence in Pakistan’s banking system and aligning it with international best practices.
NIBAF underscored that programs such as this are central to the State Bank’s capacity-building efforts, ensuring that new officers enter the field with a solid grounding in regulatory compliance, financial stability frameworks, and crisis management strategies. The institute also noted that the training complements broader initiatives aimed at modernizing the banking sector, integrating risk-based supervision, and adopting proactive oversight mechanisms.
With the global banking environment becoming increasingly interconnected and vulnerable to cross-border risks, the combination of Basel III knowledge and practical problem bank management skills positions SBOTS-27 officers to contribute effectively to policy enforcement and institutional resilience.