Financial Sector Assessment

Effect on Financial Stability

Rating agencies contribute to enhancing financial stability through two channels. First, by summarizing a large and diverse amount of information for the benefit of investors and by acting as a monitor of default prospects and default events, rating agencies provide market incentives for improved governance by issuers. Second, bank regulators increas­ingly use rating information in assessing capital adequacy. The standardized approach of the New Basel Capital Accord spells out six criteria that supervisors can use to evaluate external credit assessment institutions before allowing their ratings to be used as the basis for assigning risk weights on banks’ exposures.

The recognition criteria consist of (a) objectivity (use of rigorous rating methodol­ogy that is subject to validation and back testing); (b) independence (free-form political or industry pressures); (c) international access and transparency of assessments (ratings should be disclosed and should be available to both domestic and international investors); (d) disclosure (of assessment methodology, including definition of default, time horizon, and the meaning of each rating); (e) resources (sufficient to carry out high-quality assess­ments); and (f) credibility (wide acceptance and integrity of the process). See Basel Committee on Banking Supervision (2004).

Rating agencies may weaken financial stability through the effect of rating changes on market perceptions. Recent experience has also highlighted that “procyclical” behavior of ratings agencies may have contributed to financial instability because of asset price chang­es arising from upgrading in good times and downgrading in bad times; rating changes also have significant spillover effects on other asset markets, including in neighboring developed and developing countries (Kaminsky and Schmuckler 2002).

Добавить комментарий

Financial Sector Assessment

International Finance Corporation (IFC)

IFC publishes the Emerging Markets Database (EMDB). EMDB contains the latest figures for all IFC indices—global, investable, industry, and frontier—and on market data such as prices, corporate actions, and stock …

Links with the Basel Core Principle

The “efficient resolution of problems in banks” is mentioned in the Core Principles for Effective Banking Supervision (BCP) issued by the BCBS as one of the key precondi­tions for effective …

The Mapping of Macroscenarios to Balance Sheets: The Bottom-Up Approach

Translating a macroeconomic framework into the balance sheet of a financial institution requires mapping macrovariables into a set of common risk factors that can be applied to stress individual balance …

Как с нами связаться:

Украина:
г.Александрия
тел./факс +38 05235  77193 Бухгалтерия

+38 050 457 13 30 — Рашид - продажи новинок
e-mail: msd@msd.com.ua
Схема проезда к производственному офису:
Схема проезда к МСД

Партнеры МСД

Контакты для заказов оборудования:

Внимание! На этом сайте большинство материалов - техническая литература в помощь предпринимателю. Так же большинство производственного оборудования сегодня не актуально. Уточнить можно по почте: Эл. почта: msd@msd.com.ua

+38 050 512 1194 Александр
- телефон для консультаций и заказов спец.оборудования, дробилок, уловителей, дражираторов, гереторных насосов и инженерных решений.