The National Bank of Pakistan (NBP) has taken a major step in its international restructuring by closing two of its most prominent foreign branches located in New York and Paris. According to the bank’s annual report, this decision is part of a broader strategy to streamline its overseas presence by exiting low-yielding markets and reducing operational costs.
NBP, Pakistan’s state-owned bank, shut down its Paris branch after nearly five decades of operations. The closure was driven by consistent financial losses that became unsustainable. With the conclusion of all legal and regulatory formalities, accounts related to Pakistan’s Embassy in France and other Pakistani expatriates were successfully transferred to a local French bank. The move marks the end of a long chapter for NBP in France, where it once served as a vital link for the Pakistani diaspora and diplomatic community.
The closure of the New York branch is equally significant. Located on Wall Street, this branch held the distinction of being the only Pakistani banking presence in the United States. However, NBP’s presence in the U.S. had been under scrutiny for several years. Regulatory authorities began a detailed examination in 2015, highlighting severe compliance issues—particularly around anti-money laundering (AML) protocols. While successive management teams attempted to rectify the problems, the compliance concerns persisted.
In 2022, U.S. regulators including the Federal Reserve Bank and the New York State Department of Financial Services (NYDFS) imposed a $55 million penalty on NBP’s New York branch. The fines stemmed from historical deficiencies in the bank’s compliance systems and delays in remediation, although no instances of fraud or willful misconduct were identified. Following the penalty, NBP claimed to have made substantial improvements to its compliance framework, efforts which were later acknowledged by U.S. regulators. By December 2024, the Federal Reserve Board formally terminated two enforcement actions previously placed on the bank.
Despite this progress, NBP decided to voluntarily surrender its U.S. banking license. With assets exceeding $110 million as of 2024, the branch was formally closed in line with directives from the bank’s board of directors. This decision brings an end to more than 60 years of NBP’s operations in one of the world’s key financial markets.
In addition to these closures, NBP has announced plans to shut down three more branches in Central Asia—specifically in Almaty (Kazakhstan), Bishkek (Kyrgyzstan), and Baku (Azerbaijan). Once completed, this downsizing will reduce the bank’s international presence from 23 branches to 16, underscoring a focused strategy toward operational efficiency and regulatory compliance.
NBP’s exit from these high-profile markets reflects a broader trend in the global banking sector, where institutions are reassessing their international footprints in light of regulatory pressure, rising compliance costs, and the push for digital transformation. The bank’s retreat from traditional foreign outposts signals a pivot toward leaner, more tech-integrated models of service delivery as part of its modernization roadmap.