Abstract
Each of these three papers evaluates how external analysts can help an institution assess the condition of its counterparties. The Smith-Walter paper (Chapter 12, “Rating Agencies: Is There an Agency Issue?”) and the White paper (Chapter 2, “The Credit Rating Industry: An Industrial Organization Analysis”) reach dramatically different conclusions about essential features of the credit rating process. These differences have extremely important implications for on-going revisions to the 1988 Basel Accord on bank capital regulation. The Barron-Staten paper (“The Value of Comprehensive Credit Reports: Lessons from the United States Experience”) stands Somewhat apart from the other two, so I will treat it first.1
“The Value of Comprehensive Credit Reports: Lessons from the U.S. Experience” by John M. Barron and Michael Staten was presented at the World Bank conference on March 1, 2001. The paper is published in Margaret Miller (ed.), Credit Reporting Systems and the International Economy, Cambridge, MA: MIT press, 2002 (forthcoming).
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References
Barron, John M., and Michael Staten. “The Value of Comprehensive Credit Reports: Lessons from the U.S. Experience,” in Margaret Miller (ed.), Credit Reporting Systems and the International Economy, Cambridge, MA: MIT Press, 2002 (forthcoming).
Evanoff, Douglas D. and Larry D. Wall. “Sub-debt as Bank Capital: A Proposal for Regulatory Reform.” Economic Perspectives, Federal Reserve Bank of Chicago, 25 (2000c), 40–53.
Flannery, Mark J. “The Face(s) of ‘Market Discipline’,” Journal of Financial Services Research, forthcoming 2001.
Smith, Roy, and Ingo Walter. “Rating Agencies: Is there an Agency Issue?” this volume.
Stiglitz, J.E., and A. Weiss. 1981, “Credit Rationing in Markets with Imperfect Information,” The American Economic Review, 71 (3), 393–410.
White, Lawrence J “The Credit Rating Industry: An Industrial Organization Analysis,” this volume.
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Fiannery, M.J. (2002). Discussion. In: Levich, R.M., Majnoni, G., Reinhart, C.M. (eds) Ratings, Rating Agencies and the Global Financial System. The New York University Salomon Center Series on Financial Markets and Institutions, vol 9. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0999-8_6
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