Development Bank of Kazakhstan to introduce new credit risk assessment model

11:05, 18 June 2013

ASTANA. June 18. KAZINFORM — Development Bank of Kazakhstan (DBK) is going to introduce a new model for credit risk assessment which is relevant to the best international practice and high standards of financial industry, the press service of the institution reports.

S & P Capital IQ company developing and improving internal rating systems for credit assessment has completed the validation of a new internal model for credit risk assessment of DBK borrowers.

"We are delighted that this project is being executed in DBK. The project prvided the Bank with a comprehensive suite of services covering all aspects of validation including evaluation of model building, evaluation methodology and performance", says Michael Baker, a senior director of S & P Capital IQ. As stated by him, the new ranking model is based on an improved methodology for accurate and objective credit risks' assessment in line with the international best practice.

Nurlan Kusainov, a chairman of DBK Board, reported that the improvement of the rating model was initiated as part of an overall strategy relating to the loan portfolio quality upgrade.

"Validation of the new rating model has been carried out by S & P Capital IQ which is part of Standard & Poor's group - one of the most reputable financial market experts having one of the best rating methodologies. As a result of joint work with S & P Capital IQ the Bank has received the rating model for credit risk assessment which was designed involving the best international practices. The practical results of this work lies in the fact that our company now posesses the tool to make more informed decisions when lending borrowers", concluded the head of DBK.

Michael Ball, a Vice president of S & P Capital IQ, also noted that regular update of the internal rating model was a tool to ensure the availability of quality instruments for a bank credit risk assessment.

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