Bangladesh Bank (BB) has approved a new rating agency named Waso Credit Rating Company (BD) Limited (WCRCL), which takes the total number of local External Credit Assessment Institutions (ECAIs) to seven.

The remaining six rating agencies are—CRISL, CRAB, NCRL, ECRL, ACRSL and ACRL.

In a circular issued Monday, the central bank urged all the scheduled banks to nominate single or multiple rating agencies for their own and counter-part credit rating to calculate the Risk Weighted Asset (RWA) against credit risk as per Risk Based Capital Adequacy (RBCA) guidelines.

As per the RBCA, the RWA against credit risk is to be computed on the basis of credit rating conducted by ECAIs, duly recognised by the central bank.

Consequently, calculated RWA and Capital Adequacy Ratio (CAR) will be reported as per specific reporting formats enclosed in the RBCA guidelines, the BB circular reads.

News: Daily Sun/Bangladesh/31-Oct-12