The State Bank of Pakistan (SBP) has announced the creation of a new “Financial Institutions Resolution Department” (FIRD) under its Banking Policy & Regulations Group.Â
The newly established department will be responsible for resolving issues faced by distressed regulated entities in the financial sector.
According to a circular issued by SBP, Syed Jahangir Shah has been appointed as the Director of FIRD.Â
The SBP stated that the establishment of FIRD aligns with its mandate to maintain financial stability by addressing challenges faced by struggling banks, development finance institutions (DFIs), and microfinance banks (MFBs).Â
