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The State Bank of Pakistan (SBP) has renewed the status of External Credit Assessment Institutions (ECAIs) of both credit rating agencies operating in Pakistan, namely JCR-VIS Credit Rating Company, and Pakistan Credit Rating Agency, for calendar year 2011.
Standardised approach of credit risk under Basel-II requires banks/DFIs to use credit ratings assigned by recognised ECAIs for the purpose of calculation of required capital, the SBP said.

Copyright Business Recorder, 2011

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