Please use this identifier to cite or link to this item:
|Title:||A public good approach to credit ratings - From concept to reality|
|Authors:||Duan, J.-C. |
Van Laere, E.
Probability of default
|Citation:||Duan, J.-C., Van Laere, E. (2012). A public good approach to credit ratings - From concept to reality. Journal of Banking and Finance 36 (12) : 3239-3247. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jbankfin.2012.03.012|
|Abstract:||From the onset of the 2008-2009 financial crisis to the subsequent European sovereign debt crisis, credit rating agencies have been assigned considerable blame. Reforming the credit rating industry has hence become an important policy issue. In addition to the regulatory efforts in the context of accepting the for-profit business model of ratings, there is a growing realization that credit ratings bear the characteristics of a public good. Financial market participants need reliable, transparent and independent assessment of credit risks. Credit ratings are therefore better viewed as an infrastructure matter. However, the proposed regulations seem to have missed this point. This paper introduces a new approach to credit ratings undertaken by the Risk Management Institute at the National University of Singapore that is predicated on the provision of credit ratings as a public good. With a public good alternative in place, the currently predominant for-profit business model may be counterbalanced. © 2012 Elsevier B.V.|
|Source Title:||Journal of Banking and Finance|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Jan 23, 2019
WEB OF SCIENCETM
checked on Jan 7, 2019
checked on Dec 29, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.