State Bank renews status of ECAIs

KARACHI: The State Bank of Pakistan (SBP) has renewed the status of External Credit Assessment Institutions (ECAIs) of both the credit rating agencies namely JCR-VIS Credit Rating Company Limited and The Pakistan Credit Rating Agency Limited operating in country for the calendar year 2012.

It may be pointed out that standardized approach of credit risk under Basel-II requires banks and DFIs to use credit ratings assigned by the recognized ECAIs for the purpose of calculation of required capital.