Institutional Ratings

PRUDENTIAL STANDARDS, GUIDELINES AND RATING SYSTEM (PSGRS)

The Infrastructure Development Bank of Zimbabwe (“IDBZ”), as a member-institution of the Association of African Development Finance Institutions (“AADFI”), is required to submit annual self-assessments of their institutions with the Prudential Standards, Guidelines and Rating System (“PSGRS”). African leaders in their articulation of the New Partnership for Africa‟s Development (“NEPAD”) committed themselves to adhering to international standards in the conduct of policy and management of their institutions in order for the economic and business affairs of their countries and institutions to be conducted in a transparent and predictable way.

The rating system has been designed to meet five principal objectives:

i) Provide DFIs with useful guidance as to what their own rules and regulatory policies should be as well as provide a benchmark to compare these policies and results with other DFIs in the region.

ii) Introduce a self-regulated early warning system for DFIs to assist them in initiating credible remedial measures before they are forced to do so by owners, regulators or lenders.

iii) Provide central banks and owners in some countries with useful proposals for possible custom tailoring of existing regulatory requirements imposed on DFIs as well as provide them with some leverage to require weaker DFIs to take corrective measures when they are showing signs of trouble.

iv) Provide donors with a useful set of standards and yardsticks by which to assess DFIs and their suitability as financial intermediaries worthy of funding and/or technical assistance support.

v) Improve the reputation of DFIs that adopt the standards to provide them with a tool for dialogue with government owners and regulators by showing them what is considered good practice within the region, provide them with insight as to how they compare with other DFIs in the region, and assist in presenting their case to donors for support.

The Rating System has 3 categories subject to assessment, as follows: governance guidelines (40% weighting of overall score), financial prudential standards (40% weighting of overall score), and operational guidelines (20% weighting of overall score).

PRUDENTIAL STANDARDS, GUIDELINES AND RATING SYSTEM – Development Finance Institutional Rating 
 
The Bank was rated under the Prudential Standards, Guidelines and Rating System (PSGRS). The framework falls under the purview of African Association of Development Finance Institutions (AADFI) and requires Independent validation of the rating by an external auditor. Below is a summary of the Bank’s ratings over the last 5 years (FY2015 to FY2019). The rating scale evaluates three critical areas; governance, financial and operational standards. 
 

PSGRS Standard

Maximum possible weight

 FY2019

FY 2018

score

FY2017

FY2016

FY2015

Governance

40%

38.46%

42.62%

36.4%

41.4%

40.8%

Financial

40%

33.33%

27.83%

27.3%

21.9%

23.1%

Operational

20%

19.03%

17.17%

18.7%

17.2%

16.6%

Weighted Score

 

90.82%

87.62%

82.4%

80.5%

80.5%

PSGRS rating

 

A+

A+

A

A

A

Download PSGRS Report