Publications

	Table of Contents
p. 118 of 203 BACK | NEXT Foreword 1. Introduction to the Guidelines 2. User Instructions 3. Preparing and Appraising Investment Project 4. Financial Management of Executing Agencies 5. Reporting and Auditing 6. Financial Institutions 6.1. Introduction and Overview 6.2. Reviewing FI Financial Management 6.3. FI Investments 6.4. Assessing FI Performance 6.4.1. Introduction 6.4.2. Assessing Microfinance Institutions 6.4.3. Applying the CAMEL Framework 6.4.4. Assessing FI Risks 6.4.5. Determining FI Credit Ratings 6.4.6. Specialized FI Internal Controls 6.5. Appraisal Checklist 6.6. FI Reporting and Auditing Issues 7. Knowledge Management

Financial Management and Analysis of Projects : 6. Financial Institutions : 6.4. Assessing FI Performance

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6.4.5. Determining FI Credit Ratings

6.4.5.1. The BCBS of the BIS is in the process of replacing the CAMEL framework. The new policy will become effective in 2003 and will mandate the minimum CAR for banks, based upon their overall credit rating.

6.4.5.2. Financial analysts (investment officers) are required to determine the credit rating of the FI being appraised. In some cases, these credit ratings will be readily available from published sources (for instance, the Standard and Poor's Global Ratings Handbook). In other cases, the financial analyst (investment officer) can determine the FI's credit rating by questioning other FI's in the country or region.

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