Burj Bank Limited assigned first fiduciary ratings

KARACHI: JCR-VIS Credit Rating Company Limited has assigned the first Fiduciary Ratings to Burj Bank Limited.

This rating truly reflects the spirit of Islamic finance by capturing the elements of Mudarib quality, institutional governance and compliance with Shariah principles adopted by the bank. BBL has been assigned an aggregate Fiduciary score of 70 percent, which denotes ‘adequate fiduciary standards’.

The outstanding credit ratings of BBL are ‘A/A-2’ (Single A/A-Two) with a ‘Stable’ Outlook. Following the change in the bank’s ownership and in a bid to cultivate a stronger franchise, the bank re-branded itself in July 2011.

Quality of Board oversight function has improved overtime, with active functioning of the Board and reinforcement of Board level committees for effective oversight, in recent periods.
There are currently no independent directors on the Board.

However appointment of independent directors is in process and the bank has obtained relaxation in this regard from the State Bank of Pakistan until December 31, 2011.

There was change at almost all key positions during FY10; the new executive management team comprises experienced professionals. With change in management, the bank is in the process of revamping its policies and procedures, to align them with current market conditions.

Formal organisational structure and job descriptions for all staff positions were developed, thus roles and responsibilities are more clearly defined now. A well structured succession plan is also in place.

Leave a Reply