JCR-VIS Credit Rating Company Limited has reaffirmed the corporate governance rating of Allied Bank Limited at CGR-8+, denoting ‘high level of corporate governance’. The 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; 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 current 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 areas of Information Technology and over all control environment of the Bank. Timely implementation of these initiatives, particularly on the system side, is expected to strengthen the operational framework of the Bank.