The Role of Credit Rating Agencies in the Establishment of Capital Standards for Financial Institutions in a Global Economy

20 Pages Posted: 15 Nov 2000

Date Written: undated

Abstract

Governmental bodies are increasingly incorporating the work of private credit rating agencies into regulatory standards. In this comment, Professor Jackson examines how a recent proposal of Basel Committee on Banking Supervision would extend this practice by factoring the credit ratings of borrowers into capital adequacy requirements for commercial banks. After reviewing various criticisms of the Basel Committee's proposal, the Comment considers alternative approaches to measuring the credit risk of commercial banks and concludes with a discussion of implications for regulatory policy in a global financial services industry.

Suggested Citation

Jackson, Howell Edmunds, The Role of Credit Rating Agencies in the Establishment of Capital Standards for Financial Institutions in a Global Economy (undated). Available at SSRN: https://ssrn.com/abstract=250166 or http://dx.doi.org/10.2139/ssrn.250166

Howell Edmunds Jackson (Contact Author)

Harvard Law School ( email )

Griswald 402
1563 Massachusetts Avenue
Cambridge, MA 02138
United States
617-495-5466 (Phone)
617-495-5156 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
1,743
rank
8,805
Abstract Views
5,861
PlumX Metrics