BSD
Circular Letter No. 03 of 2008 |
June 24, 2008 |
The
Presidents / Chief Executives,
All Banks / DFIs
Dear
Sirs / Madam,
INTERNAL
CREDIT RATING SYSTEM – OBLIGOR AND FACILITY RATINGS
Please
refer to BSD Circular No. 08 dated October 29, 2007 whereby
Guidelines on Internal Credit Risk rating Systems were
issued to all Banks and Development Finance Institutions
(DFIs).
2. In terms of Para 4 and 5 of the above referred Circular,
the Banks/DFIs were required to develop their internal
credit risk rating policy duly approved by their Board
of Directors and submit a copy of the same to Banking
Surveillance Department, State Bank of Pakistan latest
by 30th June, 2008. Furthermore, the Banks/DFIs were required
to map their internal risk rating grades to the grades
provided by the State Bank and report these mapped ratings
in their regular e-CIB reporting in the field IBRATING
from the month of July 2008.
3. On the representation of banks, it has been decided
to revise the deadlines for implementation of these instructions
as under:
i)
All Banks/DFIs should put in place Internal Credit Risk
Rating policy duly approved by their Board of Directors
latest by 31st August 2008. No further relaxation in this
regard will be granted.
ii) Banks/DFIs should rate all their corporate customers
latest by 30th September 2008 and report ‘Corporate
Ratings’ in the e-CIB from the month of October
2008.
iii) They should start rating/scoring their new consumer
customers from the month of October 2008. The rating/scoring
of the existing customers should be completed by 31st
December 2008. They must start reporting rating/scoring
in e-CIB from January 2009.
iv) As to Facility Ratings, Banks/DFIs should continue
their efforts to establish their systems as early as possible.
4.
Banks/DFIs are advised that they should follow the definitions
of ‘Corporate’ and ‘Consumer’ for
e-CIB reporting as provided in the Banking Supervision Department’s
Letter No. BSD/SU-61/101/7494/2004 dated December 09, 2004.
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Yours faithfully,
Sd/-
(LUBNA FAROOQ MALIK)
DIRECTOR
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