Canara bank, a public lender signed a Memorandum of Understanding (MoU) with Credit Analysis & REsearch Limited (CARE), a premier credit rating agency.
CARE has been endorsed by Banks and Financial Institutions, provides credit rating, financial and advisory services to various corporate and financial bodies in
With this signing of MoU Canara Bank will certain the fulfillment of the guidelines for Standardized approach of RBI's New Capital Adequacy Framework (Basel-II). According to these guidelines, the capital requirement for a corporate exposure is based on the credit rating assigned by the recognized rating agencies such as CARE.
This MoU will allow clients of Canara Bank to approach CARE for getting their facilities with the Bank rated. The bank clients will get benefited from the rating exercise at a discounted rate. All these ratings will be carried out after obtaining authorization from the Bank’s clients/prospective clients.
CARE carry out objective and independent assessment of borrower’s credit quality, and share logical approach on various industries and evolving economic environment with the Bank.
No comments:
Post a Comment