Press Release
JCR-VIS Reaffirms Corporate Governance Rating of Allied Bank Limited at CGR-8+
Karachi, October 17, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the corporate governance rating of Allied Bank Limited (ABL) at CGR-8+, denoting ‘high level of corporate governance’. This rating is based on a scale ranging from CGR-1 (lowest) to CGR-10 (highest).
Corporate governance ratings are based on evaluation of key governance areas of the rated institution, which include regulatory compliance; board oversight; management profile; self-regulation; financial transparency and relationship with stakeholders. The rating takes into consideration the continued commitment of the board and management of the bank to maintain a sound governance framework.
While areas like regulatory compliance, management profile, financial transparency and relationship with stakeholders, depict strength, concrete steps have been taken to improve board oversight function. This includes realignment and reconstitution of certain board-level committees in the ongoing year for improving their effectiveness. The additional delegation of responsibility to the management team is a positive sign; further progress in this regard is needed to augment the governance structure. On the self-regulation front, developments are ongoing in the area of Information Technology and overall control environment of the bank. Timely implementation of these initiatives, particularly on the systems side, is expected to strengthen the operational framework of the bank.
For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 (10 lines) or fax to 35311872-73.
Javed Callea
Advisor