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The State Bank of Pakistan has renewed the status of external credit assessment institutions (ECAIs) of both credit rating agencies operating in the country ie JCR-VIS Credit Rating Company Limited and The Pakistan Credit Rating Agency Limited (Pacra) for the calendar year 2009.
It may be mentioned here that as per the standardised approach of credit risk under Basel-II, banks/DFIs are allowed to use the credit ratings assigned by recognised ECAIs for the purpose of calculation of their capital adequacy ratio (CAR).

Copyright Business Recorder, 2009

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