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Guideline on The Recognition and Use of External Credit Assessment Institutions

The Standardised Approach to Credit Risk requires banks to use credit assessments provided by external credit assessment institutions (ECAIs) that are recognised by national supervisors as eligible for regulatory capital purposes, to determine the risk-weights on their credit exposures. The purpose of this guideline is to outline the Bank’s approach to the recognition process of ECAIs and the use by banks of eligible ECAIs.