Banking and Financial Council (CBF) Launches Platform for Rating Large Exposures and Risky Engagements
The Banking and Financial Council (CBF) announced on Thursday, in a statement, the launch of a platform for rating large exposures and risky engagements. A kick-off meeting was organized on this occasion, in the presence of the general managers of banks and financial institutions, as well as the heads of risk, commitment, and credit departments. "This kick-off crowns a program initiated in April 2021 and effective for thirty months, under the aegis of the CBF in partnership with the national rating agency PBR Rating, and the launch of Phase II, dedicated to sharing, development, and consolidation of achievements," explains the Council.
It indicated that "the implementation of this new phase of the program through sharing, under the aegis of the CBF, of the rating and monitoring platform for large exposures, aims to centralize notes and rating reports related to large exposures in the sector, in an updated database, for the benefit of all CBF members."
The Council added that "this rating program, which was specifically set up to support the banking and financial sector in the prevention, detection, and monitoring of risky engagements, based on the strategic choices of each institution, has enabled those that were part of the pilot group to comply."
The program has enabled the rating of companies with exposures to the banking and financial sector exceeding 25 million dinars, a success for the sector and the national economic fabric, with over 2.5 billion dinars in rated assets, corresponding to 63 ratings and reports, with over 21 files being processed in the short term, according to the same source.
For banks and financial institutions, the launch of this platform "highlights the importance of rating and the adherence of Tunisian companies to improve their financial situation." "Rating, as provided for by the applicable prudential regulation, allows banks and financial institutions to have better visibility into the degree of stability and sustainability of their corporate customers," recalls the CBF.
It estimates that, in parallel with the internal scoring process (SNI), the external rating missions for evolving engagements provide the banking and financial sector, in general, with better risk management, consolidation of risk management indicators, sectoral risk mapping, greater visibility into the economic and financial environment, and decision-making tools and commercial and strategic policy improvement.
The rating reports will also allow bank and financial institution customers, adds the Council, to access a complete rating diagnosis, their solvency, and the quality of their financial situation, as well as their real debt and repayment capacities, thus benefiting from an evolving support for monitoring operational efficiency and financial management.
"It is also worth noting, as everywhere else, that rating serves as a reasoned argument for negotiation, for pricing and financing conditions, for both the borrower and the lender."
The strengthening and deployment of this program on a larger scale aim to ensure the reliability of ongoing operations and potentially the security and prevention of systemic risks faced by the banking and financial sector, argued the CBF.
"The Council contributes, alongside PBR Rating, to promoting and strengthening the transparency and quality of financial information, its assessment, and the treatment of counterparty risks within the banking and financial sector, for healthy governance in accordance with best practices and applicable regulations," specified the CBF.
