An important starting point for the analysis of bank system risk from a sovereign ratings
perspective is Fitch's Bank Systemic Risk (BSR) indicators, which are reported semi-annually
in the Macro-Prudential Risk Monitor for most countries with Fitch-rated sovereigns. 5
The
Banking System Indicator (BSI) aims to measure a banking system’s standalone financial
quality or strength and is a simple weighted average of bank Viability Ratings for a critical mass
of a country’s banks. The typical developed country banking system is scored BSI ‘a’ whereas
the typical EM system is in the range ‘bbb'/'bb'/'b’. F