A Lower Bank Rating
OWAIN AP GWILYM considers the implications of tighter regulation of credit-ratings agencies for European banks.
Events during the global financial crisis triggered increased attention on the major international credit-rating agencies (CRAs), with numerous criticisms levelled at the influence of the industry’s dominant players – Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) – in financial markets. This included a perception that serial downgrades of European sovereigns and banks had extended and worsened the eurozone crisis. EU regulatory changes have sought to mitigate the credit-rating industry’s perceived lack of transparency, lack of competition and conflicts of interest. To read on, please download the article below.
*Owain ap Gwilym is Professor of Finance at Bangor Business School.
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A Lower Bank Rating 236 KB
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