Banks can use the ratings of the Brickwork; RBI

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Banks can use the ratings of the Brickwork; RBI
The Reserve Bank of India(RBI) has decided that banks may also use the ratings of the Brickwork Ratings India Pvt. Ltd. (Brickwork) for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing four domestic credit rating agencies.

The rating-risk weight mapping for the long term and short term ratings assigned by Brickwork will be the same as in case of other rating agencies.

Before four domestic credit rating agencies viz. CARE, CRISIL, FITCH India and ICRA have been accredited for the purpose of risk weighting the banks' claims for capital adequacy purposes.

The long term and short term ratings issued by these domestic credit rating agencies have been mapped to the appropriate risk weights applicable as per the Standardised Approach under the Basel II Framework.

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