Request for Comments – Update of the Methodology for Assignment of Financial Strength Rating of Banks

Date created: 17-Jul-2015

 

Hereby, BCRA invites all stakeholders to submit their comments on the attached “Methodology for Assignment of Financial Strength Rating of Banks” to e-mail address methodologycomments@bcra-bg.com by August 17, 2015.  At the end of this period and upon incorporating any changes deemed necessary, the methodology will be adopted and published in its final form.  The changes in the Methodology may lead to changes in the current ratings of bank financial strength issued by BCRA by one or more notches upgrade or downgrade. Once the Methodology enters into force, the ratings of those banks will be placed in status “Under Review” and will be reviewed within a six-month period using the new Methodology.

 

The main changes made with this update of the Methodology are as follows:

- Applying a new rating scale for bank financial strength in line with BCRA’s unified rating scale (attached to this document);

- Issuing national-scale ratings to banks using BCRA’s National Rating Scale;

- Using a new analytical method for evaluating the effect of the operating environment in the banking sector on the bank financial strength rating;

- Using a new analytical method for evaluating the effect of the sovereign risk on the bank financial strength rating in line with BCRA’s Sovereign Rating Methodology.

 

In order for BCRA to consider your comments, please include in your response the following information:

  • Name
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  • Would you like BCRA to preserve your anonymity when publishing your comment?