Credit Rating Agencies: No Easy Regulatory Solutions

The World Bank Group, Financial and Private Sector Development Vice Presidency, Crisis Response Policy Brief 8

8 Pages Posted: 9 Oct 2009  

Jonathan G. Katz

U.S. Securities and Exchange Commission

Emanuel Salinas Munoz

World Bank

Constantinos Stephanou

BIS/Financial Stability Board

Date Written: October 6, 2009

Abstract

In the United States and Europe faulty credit ratings and flawed rating processes are widely perceived as being among the key contributors to the global financial crisis. That has brought them under intense scrutiny and led to proposals for radical reforms. The ongoing debate, while centered in major developed markets, will also influence policy choices in emerging economies: Whether to focus on strengthening the reliability of ratings or on creating alternative mechanisms and institutions that can perform more effectively the role that in developed markets has traditionally been conferred on credit rating agencies.

Keywords: credit rating, rating agencies, financial regulation, financial crisis

JEL Classification: G28

Suggested Citation

Katz, Jonathan G. and Munoz, Emanuel Salinas and Stephanou, Constantinos, Credit Rating Agencies: No Easy Regulatory Solutions (October 6, 2009). The World Bank Group, Financial and Private Sector Development Vice Presidency, Crisis Response Policy Brief 8. Available at SSRN: https://ssrn.com/abstract=1485140

Jonathan G. Katz

U.S. Securities and Exchange Commission ( email )

9106 Drumaldry Drive
Bethesda, MD 20817
United States
301 466 6209 (Phone)

Emanuel Salinas Munoz

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Constantinos Stephanou (Contact Author)

BIS/Financial Stability Board ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Paper statistics

Downloads
876
Rank
20,513
Abstract Views
2,850