Domestic private banks have either injected own capital or sought alliances and partnerships to augment capital; alternatively domestic or foreign banks have stepped in to acquire mid- or small-sized banks to expand their capital and outreach. Excluding specialized financial institutions (such as microfinance and Islamic banks who have been allowed new licenses) SBP has imposed an embargo on new conventional bank licenses.
The process of capital enhancement and consolidation has progressed well. Of the total 39 commercial banks (excluding microfinance banks that enjoy lower capital requirements), eight banks have complied with 2009 stipulated capital requirements and 16 banks have raised capital to meet 2006 MCR, while other 11 banks are well on their course to meet the prescribed MCR.