The
Presidents/Chief Executives
All Banks/ DFIs
Dear
Sirs / Madam,
Minimum
Capital Requirements for Banks & DFIs – Revised
Regulatory Capital Framework under Basel II
Please
refer to SBP instructions on the captioned subject issued
vide BSD Circular No. 08 dated 27th June 2006.
2.
It has been decided that the banks/DFIs can also use the
ratings assigned by the following international rating agencies
as per mapping given in enclosed Annexure-1 {Table 2.3(a)}
for assigning risk weights for capital adequacy purposes:
(i) Fitch Ratings;
(ii) Moody’s; and
(iii) Standard & Poors (S&P)
3. Banks/DFIs can use the entity ratings of above mentioned
international rating agencies for the purpose of risk weighting
their foreign currency exposures either in Pakistan or outside
Pakistan. However, where ratings by the local rating agencies
are not available for exposures in Pakistan Rupees, ratings
by these international rating agencies can be used.
All other instructions on the subject, shall, however remain
unchanged.
Kindly acknowledge the receipt.
Encl:
Annexure-1
