Please refer to BSD Circular No. 08 dated October 29, 2007 whereby Guidelines on Internal Credit Risk rating Systems were issued to all Banks and Development Finance Institutions (DFIs).

2. In terms of Para 4 and 5 of the above referred Circular, the Banks/DFIs were required to develop their internal credit risk rating policy duly approved by their Board of Directors and submit a copy of the same to Banking Surveillance Department, State Bank of Pakistan latest by 30th June, 2008. Furthermore, the Banks/DFIs were required to map their internal risk rating grades to the grades provided by the State Bank and report these mapped ratings in their regular e-CIB reporting in the field IBRATING from the month of July 2008.

3. On the representation of banks, it has been decided to revise the deadlines for implementation of these instructions as under:

i) All Banks/DFIs should put in place Internal Credit Risk Rating policy duly approved by their Board of Directors latest by 31st August 2008. No further relaxation in this regard will be granted.


ii) Banks/DFIs should rate all their corporate customers latest by 30th September 2008 and report ‘Corporate Ratings’ in the e-CIB from the month of October 2008.


iii) They should start rating/scoring their new consumer customers from the month of October 2008. The rating/scoring of the existing customers should be completed by 31st December 2008. They must start reporting rating/scoring in e-CIB from January 2009.


iv) As to Facility Ratings, Banks/DFIs should continue their efforts to establish their systems as early as possible.

4. Banks/DFIs are advised that they should follow the definitions of ‘Corporate’ and ‘Consumer’ for e-CIB reporting as provided in the Banking Supervision Department’s Letter No. BSD/SU-61/101/7494/2004 dated December 09, 2004.