What Reforms for the Credit Rating Industry? A European Perspective

ECMI Policy Brief No. 17

8 Pages Posted: 12 Nov 2010  

Karel Lannoo

Centre for European Policy Studies, Brussels

Date Written: October 13, 2010

Abstract

Despite having singled out credit rating agencies (CRAs) early on in the financial crisis as needing more regulation, policy-makers in the EU seem not to be reassured by the measures that have been adopted in the meantime, and want to go further. This paper starts with an overview of the credit rating industry today. The second section analyses the use of credit ratings and shows how the authorities have created a captive or artificial market for CRAs. Section 3 reviews the new EU CRA regulation and its possible impact, and the final section compares proposals for regulatory reform.

Keywords: credit, credit rating agencies, CRA, financial crisis, regulation, policy, policy-makers, market, regulatory reform, EU

Suggested Citation

Lannoo, Karel, What Reforms for the Credit Rating Industry? A European Perspective (October 13, 2010). ECMI Policy Brief No. 17. Available at SSRN: https://ssrn.com/abstract=1706623

Karel Lannoo (Contact Author)

Centre for European Policy Studies, Brussels ( email )

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