Bank ratings: what determines their quality?
Author
Abstract
Suggested Citation
Note: 328790
Download full text from publisher
Other versions of this item:
- Harald Hau & Sam Langfield & David Marques-Ibanez, 2013. "Bank ratings: what determines their quality? [Bank risk during the financial crisis: do business models matter?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(74), pages 289-333.
- Harald Hau & Sam Langfield & David Marques-Ibanez, 2012. "Bank ratings-What determines their quality?," Working Papers 12012, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Harald Hau & Sam Langfield & David Marques-Ibanez, 2012. "Bank Ratings: What Determines Their Quality?," Swiss Finance Institute Research Paper Series 12-31, Swiss Finance Institute.
- Hau, Harald & , & Langfield, Sam, 2012. "Bank ratings: What determines their quality?," CEPR Discussion Papers 9171, C.E.P.R. Discussion Papers.
References listed on IDEAS
- Jie He & Jun Qian & Philip E. Strahan, 2011. "Credit Ratings and the Evolution of the Mortgage-Backed Securities Market," American Economic Review, American Economic Association, vol. 101(3), pages 131-135, May.
- Berger, Allen N. & Bouwman, Christa H.S., 2013. "How does capital affect bank performance during financial crises?," Journal of Financial Economics, Elsevier, vol. 109(1), pages 146-176.
- Huizinga, H.P. & Laeven, L., 2009.
"Accounting Discretion of Banks During a Financial Crisis,"
Other publications TiSEM
b94d0405-1ced-4aa4-870b-2, Tilburg University, School of Economics and Management.
- Huizinga, H.P. & Laeven, L., 2009. "Accounting Discretion of Banks During a Financial Crisis," Discussion Paper 2009-58, Tilburg University, Center for Economic Research.
- Mr. Luc Laeven & Harry Huizinga, 2009. "Accounting discretion of banks during a financial crisis," IMF Working Papers 2009/207, International Monetary Fund.
- Huizinga, H.P. & Laeven, L., 2009. "Accounting Discretion of Banks During a Financial Crisis," Other publications TiSEM 09764c84-fa16-45e7-942d-b, Tilburg University, School of Economics and Management.
- Huizinga, Harry & Laeven, Luc, 2009. "Accounting discretion of banks during a financial crisis," CEPR Discussion Papers 7381, C.E.P.R. Discussion Papers.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009.
"The Aftermath of Financial Crises,"
American Economic Review, American Economic Association, vol. 99(2), pages 466-472, May.
- Reinhart, Carmen & Rogoff, Kenneth, 2008. "Las secuelas de las crisis financieras [The aftermath of financial crisis]," MPRA Paper 13695, University Library of Munich, Germany.
- Rogoff, Kenneth & Reinhart, Carmen, 2009. "The Aftermath of Financial Crises," CEPR Discussion Papers 7209, C.E.P.R. Discussion Papers.
- Reinhart, Carmen M. & Rogoff, Kenneth S., 2009. "The Aftermath of Financial Crises," Scholarly Articles 11129155, Harvard University Department of Economics.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," NBER Working Papers 14656, National Bureau of Economic Research, Inc.
- Skreta, Vasiliki & Veldkamp, Laura, 2009.
"Ratings shopping and asset complexity: A theory of ratings inflation,"
Journal of Monetary Economics, Elsevier, vol. 56(5), pages 678-695, July.
- Vasiliki Skreta & Laura Veldkamp, 2008. "Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation," Working Papers 08-28, New York University, Leonard N. Stern School of Business, Department of Economics.
- Vasiliki Skreta & Laura Veldkamp, 2009. "Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation," NBER Working Papers 14761, National Bureau of Economic Research, Inc.
- Patrick Bolton & Xavier Freixas & Joel Shapiro, 2012.
"The Credit Ratings Game,"
Journal of Finance, American Finance Association, vol. 67(1), pages 85-112, February.
- Patrick Bolton & Xavier Freixas & Joel Shapiro, 2009. "The credit ratings game," Economics Working Papers 1149, Department of Economics and Business, Universitat Pompeu Fabra.
- Patrick Bolton & Xavier Freixas & Joel Shapiro, 2010. "The credit ratings game," Economics Working Papers 1221, Department of Economics and Business, Universitat Pompeu Fabra.
- Patrick Bolton & Xavier Freixas & Joel Shapiro, 2010. "The Credit Ratings Game," Working Papers 468, Barcelona School of Economics.
- Patrick Bolton & Xavier Freixas & Joel Shapiro, 2009. "The Credit Ratings Game," NBER Working Papers 14712, National Bureau of Economic Research, Inc.
- Mariathasan, Mike & Merrouche, Ouarda, 2014.
"The manipulation of basel risk-weights,"
Journal of Financial Intermediation, Elsevier, vol. 23(3), pages 300-321.
- Mike Mariathasan & Ouarda Merrouche, 2012. "The Manipulation of Basel Risk-Weights. Evidence from 2007-10," Economics Series Working Papers 621, University of Oxford, Department of Economics.
- Ouarda Merrouche & Mike Mariathasan, 2014. "The Manipulation of Basel Risk-Weights," Post-Print hal-01638074, HAL.
- Merrouche, Ouarda & Mariathasan, Mike, 2013. "The Manipulation of Basel Risk-Weights," CEPR Discussion Papers 9494, C.E.P.R. Discussion Papers.
- Jens Hilscher & Mungo Wilson, 2011. "Credit ratings and credit risk," Working Papers 31, Brandeis University, Department of Economics and International Business School.
- Bertay, Ata Can & Demirgüç-Kunt, Asli & Huizinga, Harry, 2013.
"Do we need big banks? Evidence on performance, strategy and market discipline,"
Journal of Financial Intermediation, Elsevier, vol. 22(4), pages 532-558.
- Demirgüc-Kunt, A. & Huizinga, H.P., 2011. "Do We need Big Banks? Evidence on Performance, Strategy and Market Discipline," Discussion Paper 2011-021, Tilburg University, Center for Economic Research.
- Demirgüc-Kunt, A. & Huizinga, H.P., 2011. "Do We need Big Banks? Evidence on Performance, Strategy and Market Discipline," Other publications TiSEM 94ca9e11-605c-422e-81df-b, Tilburg University, School of Economics and Management.
- Huizinga, Harry & Demirgüç-Kunt, Asli, 2011. "Do we need big banks? Evidence on performance, strategy and market discipline," CEPR Discussion Papers 8276, C.E.P.R. Discussion Papers.
- Demirguc-Kunt , Asli & Huizinga, Harry, 2011. "Do we need big banks ? evidence on performance, strategy and market discipline," Policy Research Working Paper Series 5576, The World Bank.
- Demirgüc-Kunt, A. & Huizinga, H.P., 2011. "Do We need Big Banks? Evidence on Performance, Strategy and Market Discipline," Other publications TiSEM 943f1401-2de0-4bc9-bb15-d, Tilburg University, School of Economics and Management.
- Matthias Efing, 2012.
"Bank Capital Regulation with an Opportunistic Rating Agency,"
Swiss Finance Institute Research Paper Series
12-19, Swiss Finance Institute.
- Matthias Efing, 2013. "Bank Capital Regulation with an Opportunistic Rating Agency," CESifo Working Paper Series 4267, CESifo.
- Campello, Murillo & Graham, John R. & Harvey, Campbell R., 2010.
"The real effects of financial constraints: Evidence from a financial crisis,"
Journal of Financial Economics, Elsevier, vol. 97(3), pages 470-487, September.
- Murillo Campello & John Graham & Campbell R. Harvey, 2009. "The Real Effects of Financial Constraints: Evidence from a Financial Crisis," NBER Working Papers 15552, National Bureau of Economic Research, Inc.
- Mathis, Jérôme & McAndrews, James & Rochet, Jean-Charles, 2009. "Rating the raters: Are reputation concerns powerful enough to discipline rating agencies?," Journal of Monetary Economics, Elsevier, vol. 56(5), pages 657-674, July.
- Nelson Camanho & Pragyan Deb & Zijun Liu, 2022.
"Credit rating and competition,"
International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2873-2897, July.
- Nelson Camanho & Pragyan Deb & Zijun Liu, 2010. "Credit Rating and Competition," FMG Discussion Papers dp653, Financial Markets Group.
- Merton, Robert C, 1974.
"On the Pricing of Corporate Debt: The Risk Structure of Interest Rates,"
Journal of Finance, American Finance Association, vol. 29(2), pages 449-470, May.
- Merton, Robert C., 1973. "On the pricing of corporate debt: the risk structure of interest rates," Working papers 684-73., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Becker, Bo & Milbourn, Todd, 2011.
"How did increased competition affect credit ratings?,"
Journal of Financial Economics, Elsevier, vol. 101(3), pages 493-514, September.
- Bo Becker & Todd Milbourn, 2010. "How did increased competition affect credit ratings?," NBER Working Papers 16404, National Bureau of Economic Research, Inc.
- Beltratti, Andrea & Stulz, René M., 2012.
"The credit crisis around the globe: Why did some banks perform better?,"
Journal of Financial Economics, Elsevier, vol. 105(1), pages 1-17.
- Beltratti, Andrea & Stulz, Rene M., 2010. "The Credit Crisis around the Globe: Why Did Some Banks Perform Better?," Working Paper Series 2010-5, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
- Rebel Cole & Lawrence White, 2012.
"Déjà Vu All Over Again: The Causes of U.S. Commercial Bank Failures This Time Around,"
Journal of Financial Services Research, Springer;Western Finance Association, vol. 42(1), pages 5-29, October.
- Rebel A. Cole & Lawrence J. White, 2010. "Deja Vu All Over Again: The Causes of U.S. Commercial Bank Failures This Time Around," Working Papers 10-15, New York University, Leonard N. Stern School of Business, Department of Economics.
- Cole, Rebel A. & White, Lawrence J., 2010. "Déjà vu all over again: The causes of U.S. commercial bank failures this time around," MPRA Paper 24690, University Library of Munich, Germany, revised 28 Jul 2010.
- Lily Fang & Ayako Yasuda, 2009. "The Effectiveness of Reputation as a Disciplinary Mechanism in Sell-Side Research," The Review of Financial Studies, Society for Financial Studies, vol. 22(9), pages 3735-3777, September.
- Manganelli, Simone & Altunbas, Yener & Marqués-Ibáñez, David, 2011.
"Bank risk during the financial crisis: do business models matter?,"
Working Paper Series
1394, European Central Bank.
- Yener Altunbas & Simone Manganelli & David Marques-Ibanez, 2012. "Bank Risk during the Financial Crisis: Do business models matter?," Working Papers 12003, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Lorenzo Garlappi & Raman Uppal & Tan Wang, 2007.
"Portfolio Selection with Parameter and Model Uncertainty: A Multi-Prior Approach,"
The Review of Financial Studies, Society for Financial Studies, vol. 20(1), pages 41-81, January.
- Raman Uppal & Lorenzo Garlappi & Tan Wang, 2004. "Portfolio Selection with Parameter and Model Uncertainty: A Multi-Prior Approach," Money Macro and Finance (MMF) Research Group Conference 2004 54, Money Macro and Finance Research Group.
- Uppal, Raman & Wang, Tan & Garlappi, Lorenzo, 2005. "Portfolio Selection with Parameter and Model Uncertainty: A Multi-Prior Approach," CEPR Discussion Papers 5148, C.E.P.R. Discussion Papers.
- Uppal, Raman & Wang, Tan & Garlappi, Lorenzo, 2005. "Portfolio Selection with Parameter and Model Uncertainty: A Multi-Prior Approach," CEPR Discussion Papers 5041, C.E.P.R. Discussion Papers.
- Paolo Fulghieri & Günter Strobl & Han Xia, 2014. "The Economics of Solicited and Unsolicited Credit Ratings," The Review of Financial Studies, Society for Financial Studies, vol. 27(2), pages 484-518.
- Bar-Isaac, Heski & Shapiro, Joel, 2013.
"Ratings quality over the business cycle,"
Journal of Financial Economics, Elsevier, vol. 108(1), pages 62-78.
- Shapiro, Joel & Bar-Isaac, Heski, 2010. "Ratings Quality over the Business Cycle," CEPR Discussion Papers 8156, C.E.P.R. Discussion Papers.
- Heski Bar-Isaac & Joel Shapiro, 2011. "Credit Ratings Accuracy and Analyst Incentives," American Economic Review, American Economic Association, vol. 101(3), pages 120-124, May.
- Berger, Allen N. & Bouwman, Christa H. S., 2011. "How Does Capital Affect Bank Performance during Financial Crises?," Working Papers 11-36, University of Pennsylvania, Wharton School, Weiss Center.
- Daniel M. Covitz & Paul Harrison, 2003. "Testing conflicts of interest at bond rating agencies with market anticipation: evidence that reputation incentives dominate," Finance and Economics Discussion Series 2003-68, Board of Governors of the Federal Reserve System (U.S.).
- Wade Cook & Moshe Kress & Lawrence Seiford, 1986. "Information and preference in partial orders: A bimatrix representation," Psychometrika, Springer;The Psychometric Society, vol. 51(2), pages 197-207, June.
- Efraim Benmelech & Jennifer Dlugosz, 2010.
"The Credit Rating Crisis,"
NBER Chapters, in: NBER Macroeconomics Annual 2009, Volume 24, pages 161-207,
National Bureau of Economic Research, Inc.
- Efraim Benmelech & Jennifer Dlugosz, 2009. "The Credit Rating Crisis," NBER Working Papers 15045, National Bureau of Economic Research, Inc.
- Frank Packer & Nikola Tarashev, 2011. "Rating methodologies for banks," BIS Quarterly Review, Bank for International Settlements, June.
- John M. Griffin & Dragon Yongjun Tang, 2011. "Did Credit Rating Agencies Make Unbiased Assumptions on CDOs?," American Economic Review, American Economic Association, vol. 101(3), pages 125-130, May.
- Lawrence J. White, 2010. "Markets: The Credit Rating Agencies," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 211-226, Spring.
- Berger, Allen N. & Bouwman, Christa H. S., 2011. "How Does Capital Affect Bank Performance during Financial Crises?," Working Papers 11-22, University of Pennsylvania, Wharton School, Weiss Center.
- Crouhy, Michel & Galai, Dan & Mark, Robert, 2000. "A comparative analysis of current credit risk models," Journal of Banking & Finance, Elsevier, vol. 24(1-2), pages 59-117, January.
- Sreedhar T. Bharath & Tyler Shumway, 2008. "Forecasting Default with the Merton Distance to Default Model," The Review of Financial Studies, Society for Financial Studies, vol. 21(3), pages 1339-1369, May.
- Andreas Bloechlinger & Markus Leippold, 2012. "Are Ratings the Worst Form of Credit Assessment Apart from All the Others?," Swiss Finance Institute Research Paper Series 12-09, Swiss Finance Institute.
- Donald P. Morgan, 2002. "Rating Banks: Risk and Uncertainty in an Opaque Industry," American Economic Review, American Economic Association, vol. 92(4), pages 874-888, September.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Efing, Matthias & Hau, Harald, 2015.
"Structured debt ratings: Evidence on conflicts of interest,"
Journal of Financial Economics, Elsevier, vol. 116(1), pages 46-60.
- Hau, Harald & Efing, Matthias, 2013. "Structured Debt Ratings: Evidence on Conflicts of Interest," CEPR Discussion Papers 9465, C.E.P.R. Discussion Papers.
- Matthias Efing & Harald Hau, 2013. "Structured Debt Ratings: Evidence on Conflicts of Interest," Swiss Finance Institute Research Paper Series 13-21, Swiss Finance Institute.
- Nelson Camanho & Pragyan Deb & Zijun Liu, 2022.
"Credit rating and competition,"
International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2873-2897, July.
- Nelson Camanho & Pragyan Deb & Zijun Liu, 2010. "Credit Rating and Competition," FMG Discussion Papers dp653, Financial Markets Group.
- Cornaggia, Jess & Cornaggia, Kimberly J. & Xia, Han, 2016. "Revolving doors on Wall Street," Journal of Financial Economics, Elsevier, vol. 120(2), pages 400-419.
- Jeon, Doh-Shin & Lovo, Stefano, 2013.
"Credit rating industry: A helicopter tour of stylized facts and recent theories,"
International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 643-651.
- Doh-Shin Jeon & Stefano Lovo, 2013. "Credit Rating Industry: A Helicopter Tour of Stylized Facts and Recent Theories," Post-Print hal-00798802, HAL.
- Jeon, Doh-Shin & Lovo, Stefano, 2013. "Credit Rating Industry: a Helicopter Tour of Stylized Facts and Recent Theories," IDEI Working Papers 762, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jeon, Doh-Shin & Lovo, Stefano, 2013. "Credit Rating Industry: a Helicopter Tour of Stylized Facts and Recent Theories," TSE Working Papers 13-376, Toulouse School of Economics (TSE).
- Attig, Najah & Driss, Hamdi & El Ghoul, Sadok, 2021. "Credit ratings quality in uncertain times," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 75(C).
- Brendan Daley & Brett Green & Victoria Vanasco, 2020. "Securitization, Ratings, and Credit Supply," Journal of Finance, American Finance Association, vol. 75(2), pages 1037-1082, April.
- Chen, Zhongfei & Matousek, Roman & Stewart, Chris & Webb, Rob, 2019. "Do rating agencies exhibit herding behaviour? Evidence from sovereign ratings," International Review of Financial Analysis, Elsevier, vol. 64(C), pages 57-70.
- Xia, Han, 2014. "Can investor-paid credit rating agencies improve the information quality of issuer-paid rating agencies?," Journal of Financial Economics, Elsevier, vol. 111(2), pages 450-468.
- Farkas, Miklós, 2021. "Competition, communication and rating bias," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 637-656.
- Bar-Isaac, Heski & Shapiro, Joel, 2013.
"Ratings quality over the business cycle,"
Journal of Financial Economics, Elsevier, vol. 108(1), pages 62-78.
- Shapiro, Joel & Bar-Isaac, Heski, 2010. "Ratings Quality over the Business Cycle," CEPR Discussion Papers 8156, C.E.P.R. Discussion Papers.
- Jess N. Cornaggia & Kimberly J. Cornaggia & John E. Hund, 2017. "Credit Ratings Across Asset Classes: A Long-Term Perspective," Review of Finance, European Finance Association, vol. 21(2), pages 465-509.
- Andreas Freytag & Martin Zenker, 2012. "The Credit Rating Market - Options for Appropriate Regulation," Global Financial Markets Working Paper Series 2012-39, Friedrich-Schiller-University Jena.
- Anil K. Kashyap & Natalia Kovrijnykh, 2016.
"Who Should Pay for Credit Ratings and How?,"
The Review of Financial Studies, Society for Financial Studies, vol. 29(2), pages 420-456.
- Anil K. Kashyap & Natalia Kovrijnykh, 2013. "Who Should Pay for Credit Ratings and How?," NBER Working Papers 18923, National Bureau of Economic Research, Inc.
- Natalia Kovrijnykh & Anil Kashyap, 2013. "Who Should Pay for Credit Ratings and How?," 2013 Meeting Papers 1125, Society for Economic Dynamics.
- Valentina Bruno & Jess Cornaggia & Kimberly J. Cornaggia, 2016. "Does Regulatory Certification Affect the Information Content of Credit Ratings?," Management Science, INFORMS, vol. 62(6), pages 1578-1597, June.
- Hirth, Stefan, 2014. "Credit rating dynamics and competition," Journal of Banking & Finance, Elsevier, vol. 49(C), pages 100-112.
- Tao Wang, 2016. "Time-Varying Rating Standards and the Distorted Incentives of Credit Rating Agencies," Global Credit Review (GCR), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 21-39.
- Yun Wang & Yilan Xu, 2015. "Race to the Top: Credit Rating Bias from Competition," Working Papers 2015-05-12, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University, revised 10 Jul 2015.
- Jeon, Doh-Shin & Lovo, Stefano, 2011.
"Reputation as an Entry Barrier in the Credit Rating Industry,"
IDEI Working Papers
675, Institut d'Économie Industrielle (IDEI), Toulouse, revised 25 May 2012.
- Jeon, Doh-Shin & Lovo, Stefano, 2011. "Reputation as an Entry Barrier in the Credit Rating Industry," TSE Working Papers 11-235, Toulouse School of Economics (TSE), revised 25 May 2012.
- Kempf, Elisabeth, 2020. "The job rating game: Revolving doors and analyst incentives," Journal of Financial Economics, Elsevier, vol. 135(1), pages 41-67.
- Park, Gitae & Lee, Ho-Young, 2018. "Opportunistic behaviors of credit rating agencies and bond issuers," Pacific-Basin Finance Journal, Elsevier, vol. 47(C), pages 39-59.
More about this item
Keywords
conflicts of interest; credit ratings; prudential regulation; rating agencies;All these keywords.
JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
NEP fields
This paper has been announced in the following NEP Reports:- NEP-BAN-2012-11-11 (Banking)
- NEP-EEC-2012-11-11 (European Economics)
- NEP-REG-2012-11-11 (Regulation)
- NEP-RMG-2012-11-11 (Risk Management)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20121484. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Official Publications (email available below). General contact details of provider: https://edirc.repec.org/data/emieude.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.