| BPRD
Circular No.15 |
June 06, 2000 |
All
Banks / NBFls.
Dear
Sirs
PRUDENTIAL
REGULATION-XXVI
CREDIT RATING OF THE FINANCIAL INSTITUTIONS
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In terms of NBFI Circular No. 6 dated April 20, 1995, it was
made mandatory for NBFIs to have themselves credit rated by
a Credit Rating Agency on the approved panel of State Bank of
Pakistan. With a view to safeguard the interest of the prospective
investors, depositors and creditors, it has now been decided
to make it mandatory for all Financial Institutions i.e. Banks/NBFIs
to have themselves credit rated by a Credit Rating Agency on
the approved panel of State Bank of Pakistan. Keeping in view
the significance of credit rating it is advised that: -
- Credit
rating will be mandatory for all Banks/NBFIs. These institutions
will be required to get themselves credit rated by June
30, 2001.
- The
credit rating will be an ongoing process i.e. credit rating
should be updated on a continuous basis from year to year
and the rating report be submitted to the State Bank of
Pakistan within a period of one month of the last notification
of rating.
- All
Banks/NBFIs listed on the Stock Exchange(s) will make a
disclosure of their credit rating to the public within one
month of the last notification of rating.
- All
other Banks/NBFIs not listed on the Stock Exchange(s) will
get themselves credit rated, however, it shall be mandatory
upon them to make their credit rating public within a period
of two years from the date of their first rating and thereafter
annually within one month of the last notification of rating.
- Non
compliance to these instructions shall render the Financial
Institutions and Official(s) concerned liable to penal action
under the relevant provisions of the Banking Companies Ordinance,
1962.
Please
acknowledge receipt.
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| Yours
faithfully,
(Kazi Abdul Muktadir)
Director |
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