KARACHI, Nov 17: The State Bank has issued a new prudential regulation for microfinance banks. Under this regulation PR 29 microfinance banks are required to get themselves credit rated by any of the rating agencies on the panel of the State Bank or any international microfinance rating agency with prior SBP approval.

The regulation made public through a circular issued on Monday (BSD no 10) the microfinance banks are required to get themselves credit rated within three years of grant of licence from the SBP or within one year of commencement of deposit mobilization services—whichever is earlier.

“The rating shall be an ongoing process and updated on a continuous basis from year to year within four months of the close of financial year after the first rating,” says the new prudential regulation. “The rating report shall be submitted to State Bank of Pakistan within 7 days of notification of the latest rating. The rating shall also be disclosed to the public within 15 days of the notification of the latest rating by the rating agency,” it adds.

The First MicroFinanceBank Ltd. that commenced operations last year has already got it credit rated from JCR-VIS credit rating company.