Dhaka, Bangladesh (BBN)- National Credit Ratings Limited (NCR) has started its journey aiming to provide high quality, independent and reliable reports on industrial and commercial enterprises using analytical competence, professionalism and integrity.
Commerce Minister Mohammad Faruk Khan formally inaugurated the company in the capital Dhaka on Monday evening, saying that the number of bank loan defaulters would fall in the near future as a result of credit ratings.
The new credit ratings company is recognized by the central bank of Bangladesh as an External Credit Assessment Institution (ECAI) in line with the Basel-II framework.
The central bank earlier allowed two credit rating agencies - Credit Rating Information and Services Limited (CRISL) and Credit Rating Agency of Bangladesh (CRAB) - as ECAIs to assess credit risks.
"We're trying to develop accountability and transparency in every sector of the country," the minister said, adding that the government is accountable to parliament.
Bangladesh Bank (BB) Governor Atiur Rahman said quality credit rating report will help reduce the cost of doing business in Bangladesh.
"Some 20,000 medium and large companies have to be rated to calculate their credit risks," the central bank chief said adding that the companies would pay more if they fail to complete credit ratings.
Under the existing guidelines, all the scheduled banks operating in Bangladesh may nominate any agency or agencies for their own and counterparty credit rating for the purpose of calculating risk weighted assets against credit risk under standardized approach of risk based capital adequacy for banks.
President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) AK Azad urged authorities concerned for taking necessary measures to bring normalcy in the capital market.
"Please, do something for the country's share markets," the apex trade body chief said without elaborating.
NCR Chairman Khondkare Ibrahim Khaled said rating is an important institute in the modern society. He also expressed the hope that the company would be capable of doing country's sovereign rating in the near future.
BBN/SSR/SI-19Oct10-3:49 pm (BST)