The State Bank of Pakistan (SBP) has announced a significant restructuring of its Banking Supervision Group to enhance regulatory oversight and operational efficiency within the financial sector. As part of this initiative, the SBP has consolidated its existing three departments into two key divisions: Banking Supervision Department-1 (BSD-1) and Banking Supervision Department-2 (BSD-2). This reorganization was detailed in BSD-1 Circular No. 01 of 2024, issued on December 13, 2024.
Additionally, in response to the growing importance of cybersecurity in the financial sector, the SBP has established a dedicated Cyber Risk Management Department (CRMD). This new department will conduct both on-site and off-site supervision to monitor and mitigate cybersecurity risks faced by regulated entities, including banks, microfinance institutions, and development finance institutions.
The leadership structure under the new framework has also been confirmed. Syed Mansoor Ali has been appointed to lead BSD-1, while Fazal Mahmood will head BSD-2. The newly formed Cyber Risk Management Department will be overseen by Ali Murtaza.
The SBP emphasized that this restructuring aligns with its broader strategy to fortify the financial system against emerging risks, particularly in the digital domain. With cyber threats escalating globally, the establishment of the CRMD marks a proactive step toward safeguarding Pakistan’s financial ecosystem against potential disruptions.
The SBP has urged all regulated entities, including commercial banks and development finance institutions, to take note of the updated supervisory structure and ensure compliance with the revised regulatory framework. The central bank reaffirmed its commitment to strengthening Pakistan’s banking infrastructure by enhancing transparency, efficiency, and resilience to emerging challenges.
This development underscores the SBP’s evolving role in addressing both traditional banking risks and modern cybersecurity threats, ensuring the stability and integrity of Pakistan’s financial system in an increasingly digitized economy.