Request for comments - update of the Methodology for assignment of Bank’s Rating (expired)

Date created: 07-Mar-2018

BCRA invites all stakeholders to submit their comments on the exposed in the current document "Methodology for assignment of Bank’s Rating" (formerly referred to as the "Methodology for assignment of financial strength rating of banks") to e-mail: to April 7, 2018. At the end of this period and after the necessary changes have been adopted, the Methodology will be adopted and published in its final form. The change in the above mentioned methodology will not lead to a change in the current financial strength ratings of none of the banks rated by BCRA, as the changes refer to the creation of an opportunity for assignment of a deposit rating to a bank and do not concern changes in the methodology, model or key assumptions for assignment of bank financial strength rating, so after its final entry into force it is not necessary all current banks ratings to be placed „Under review“, respectively,reviewed within six months.

The reasons for the changes made are to provide an opportunity, in addition to a complex assessment of the bank financial strength, to carry out an assessment of a specific part of its business activity, such as attracting and paying off deposits.

The main changes laid out in the update of the Methodology for assignment of Bank’s rating are as follows:

  • The methodology has been amended by creating an opportunity for assigning a bank deposit rating, that’s why the name of the methodology has been changed from the "Methodology for assignment of financial strength rating of banks" to "Methodology for assignment of Bank's Rating”;
  • The text referring to the opportunity of assigning a national-scale rating has been placed at the beginning of the document, specifying that this type of assessment can only be assigned in addition to a financial strength rating assigned to a bank;
  • A new section has been added describing assignment of deposit rating, including used model and sections on which a major focus is placed in assigning it.

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