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KARACHI, Jan 15: The State Bank of Pakistan has renewed the status of external credit assessment institution (ECAI) of both the credit rating agencies operating in Pakistan, the JCR-VIS Credit Rating Company Limited and The Pakistan Credit Rating Agency Limited - for one year ending Dec 31, 2008.
As per the Basel-II implementation plan of the State Bank, all banks and DFIs have to formally implement the standardised approach of the credit risk for measurement of capital adequacy, from Jan 1.
The standardised approach allows commercial banks to use credit ratings assigned by the recognised ECAIs for calculation of required capital.—APP
