Is a European rating agency sensible, and how should it be organised?

The mistakes of the dominating US rating agencies have led to calls for setting up a large European rating agency. Erich Harbrecht and Martin Wieland, Deutsche Bundesbank, do not think it wise to set up a counterpart to the US agencies. The misjudgements of the rating agencies regarding structured financial products were "method and product specific" and were not particularly characteristic of individual regions. What is important is general conditions that are consistent internationally, which, independent of the national base of the agencies, promote incentives for high quality in the preparation of rankings. Also the users of ratings - investors and regulators - are called on to reconsider their use of ratings. For Ralf Elsas, University of Munich, a regulation of rating agencies is necessary that creates transparency with regard to their business activities, remuneration structures and the qualities of the rating product. For the necessary supervision of the rating agencies, expanded disclosure obligations vis-à-vis the public and the regulators are indispensable. A rating testing service (Rating-TÜV) should be created. For Ottmar Schneck, University of Reutlingen, it is not a matter of the organisation of rating agencies, nor is the size and internationality of the agency decisive when the focus is placed on the quality of the process. For this reason the emphasis should be on the validity, reliability and objectivity of the rating processes.