1. The scale is comprised as follows:
a. Equity - 15 points;
b. Asset quality - 35 points;
c. Management capacity - 15 points;
d. Business performance - 20 points; and
e. Liquidity - 15 points.
2. The Bank is downgraded in the following cases:
a. Chapter capital is less than legal capital;
b. Insufficient capital;
c. General failure to follow the State Bank's instructions;
d. Bad debt ratio greater than 3%;
e. Failure to follow the State Bank's instuctions on encouraging effective means of capital increase;
f. Ratio of securities depreciation provisions of the total investment balance in the balance sheet exceeds 1%;
g. The ratio of earning assets to the total on-balance sheet assets attains less than 75%;
h. The off-balance sheet commitment quality ratio is greater than 3%;
i. Failure to either have enough members of the Board of Directors or the Supervisory Board, or to issue full and standardized internal regulations;
j. Weak and inefficient internal inspection and auditing system;
k. Violation of regulations on stockholders, shares and stocks;
l. Poor business performance;
m. Failure to assure a liquidity ratio in accordance with the State Bank's regulations.
1. Grade-A 80 points or more;
2. Grade-B 60 to 79 points;
3. Grade-C 50 to 59 points;
4. Grade-D less than 50 points.
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