NIBAF Pakistan conducted a specialized technical module on Risk Based Supervision (RBS) for officers participating in the State Bank Officers Training Scheme (SBOTS-28). The training session was held on August 28, 2026, at the NIBAF Pakistan Islamabad Campus and focused on strengthening the understanding of supervisory approaches used within the banking and financial sector. The programme provided officer trainees with an opportunity to study the principles and mechanisms involved in assessing risks and evaluating the condition of financial institutions through a structured supervisory framework.
The module was designed around Risk Based Supervision, an approach that places emphasis on identifying, assessing and monitoring the risks faced by financial institutions. During the session, participants were introduced to supervisory evaluation techniques used by the State Bank of Pakistan (SBP), along with mechanisms for developing risk profiles and assessing the overall risk position of institutions. The training was intended to provide SBOTS-28 officers with technical knowledge relevant to their future responsibilities within the financial sector regulatory environment.
The session was facilitated by Najeebullah Shaikh, Senior Joint Director, BSD-2, State Bank of Pakistan. His involvement brought direct supervisory experience from SBP into the training programme, allowing officer trainees to gain insights into the processes and considerations involved in financial sector supervision. The module focused on the technical aspects of RBS and provided participants with an opportunity to understand how supervisory assessments can be used to identify areas requiring attention and determine appropriate regulatory responses.
A key component of the training covered SBP’s supervisory evaluation techniques. These techniques form an important part of the assessment process through which the financial condition and risk profile of institutions can be evaluated. The trainees were provided with an understanding of how supervisory assessments contribute to identifying potential areas of concern and supporting informed regulatory decisions. The session linked these evaluation techniques with the broader objective of maintaining stability across the financial sector.
Risk profiling was another important area addressed during the module. The training provided officers with an understanding of mechanisms used to identify and assess the risks associated with financial institutions. Risk profiling allows supervisors to develop a clearer assessment of the areas that may require greater supervisory attention. For officers preparing for roles within the State Bank of Pakistan, knowledge of these mechanisms is relevant to understanding how regulatory resources and interventions can be directed toward areas presenting greater levels of risk.
The programme also covered capital adequacy assessments, an important element of banking supervision. Capital adequacy provides an indication of a financial institution’s capacity to absorb potential losses and maintain its financial position. Understanding the assessment of capital adequacy is therefore an important part of supervisory training, particularly for officers who may be involved in evaluating the financial strength and risk management position of regulated institutions.
The module further addressed proactive regulatory interventions designed to support financial sector stability. Rather than focusing only on issues after they emerge, risk based supervision enables regulators to identify potential vulnerabilities and take appropriate measures based on the risk profile of institutions. The training provided SBOTS-28 officers with an understanding of how supervisory processes and regulatory interventions can be used to address emerging risks and support the stability of financial institutions.
The session formed part of the State Bank Officers Training Scheme (SBOTS-28), providing participating officers with technical knowledge relevant to banking regulation and supervision. Training programmes of this nature are intended to equip officers with an understanding of the regulatory frameworks, supervisory tools and technical concepts that are relevant to their responsibilities within the central banking environment.
The focus on Risk Based Supervision is particularly relevant to maintaining effective oversight of the financial sector. Financial institutions face different levels and types of risk depending on their operations, business models and financial conditions. A risk based supervisory approach enables these differences to be considered when evaluating institutions and determining areas requiring supervisory attention. The module therefore provided trainees with a structured understanding of how risk considerations can influence the supervisory process.
Through the session, NIBAF Pakistan provided SBOTS-28 officer trainees with technical exposure to supervisory evaluation, risk profiling, capital adequacy assessments and proactive regulatory measures. The training at the Islamabad Campus also brought together specialised knowledge from NIBAF Pakistan and the State Bank of Pakistan, supporting the development of officers preparing for responsibilities within the country’s financial regulatory framework.
The Risk Based Supervision module highlights the importance of specialised training in preparing banking and regulatory professionals to understand the mechanisms used to assess financial sector risks. By covering supervisory evaluation techniques, risk profiling, capital adequacy and regulatory interventions, the session provided SBOTS-28 trainees with a broad technical foundation in RBS and its role in supporting financial sector stability.
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