Banking Regulations & Supervision

State Bank of Pakistan has been endeavoring to promote self-discipline in the financial markets of Pakistan through transparency and sufficient disclosure by the market participants. In order to augment our ongoing efforts to maximize disclosure for the benefit of stakeholders and market participants, all banks/DFIs were required to get themselves credit rated with effect from June 30, 2001. The objective was to provide another yardstick to the market participants and stakeholders for informed decision making, promote healthy competition and induce financial institutions to improve their state of financial affairs. This decision was taken after consultations with the representatives of banks/DFIs.

Accordingly, banks/DFIs continuously get themselves credit rated from credit rating agencies on the panel of SBP i.e. banks’/DFIs’ rating is updated from year to year, within six months from the date of close of each financial year. Most of the banks/DFIs have already made their credit rating public through print media and we have also compiled their ratings for the benefit of all stakeholders.

Credit rating is an independent opinion expressed by the professional bodies i.e. credit rating agencies that states about capacity of an entity to meet its obligations and is based on various quantitative and qualitative factors. These ratings therefore, represent the opinions of respective rating agencies and do not reflect the views of the State Bank of Pakistan. Besides they also do not represent investment advice or should be construed as such.

DIRECTOR
BANKING POLICY & REGULATIONS DEPARTMENT
STATE BANK OF PAKISTAN