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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  

Howell E. Jackson

Harvard Law School

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 E., 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 )

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