Credit Ratings

We study the impact credit rating revisions have on stock returns of Australian firms rated by Standard & Poor's and Moody's. Our evidence is consistent with that documented in the USA showing that only downgrades contain pricerelevant information. The reaction is most significant when the downgrade: (i) is unanticipated; (ii) is for an unregulated firm; and (iii) reduces the firm's rating by more than one category.

An efficient financial system facilitates the optimal allocation of resources towards economic development of a country by allocating resources efficiently. Markets which are a part of the financial system, support efficient allocation of funds,thus development of capital markets play a vital role in economic development of a country.Information asymmetry and lack of information can fear away investors, while a?creditrating? assignedby an independent party can attract investors to markets. The purpose of this study is to identify the current trend of the credit rating industry in Sri Lanka(SL). Data were obtained mainly from interviews and other secondary sources such as annual reports of SEC, and rating reports etc.Quantitative data, were analyzed using; ratio analysis and percentage calculations, whilequalitative data were analyzed using content analysis. The study revealed that underdeveloped capital markets and low financial literacy hinder the use of credit ratings in SL influe...

The goal of this paper is to analyze the role that non-financial variables can play in assessing Smes creditworthiness and to compare their value in predicting business failure with the one of the most commonly used financial ratios. We investigate the importance for banks in modeling credit risk for Smes using non-financial variables able to describe the relationship company-banks. Our findings demonstrate that credit relationship information is better predictor of corporate failure than financial ratios. We also test the models on an out-of-time and out-of-universe sample to prove their accuracy and soundness. Our initial assumptions remained confirmed: non-financial variables allow to improve the accuracy and performance of banks’ credit rating models.

Long before the Dana Gas Sukuk default highlighted how the legal complexity of Sukuk could be exploited in a default situation The  Investment Dar company of Kuwait tried the same strategy.

Did they succeed (like Dana Gas) or Fail? This paper looks in detail at the case and the various legal aspects.

In particular the author looks at the heart of the problem and the source of this 'Shariah  Compliance Risk' - form over substance compliance with Islamic non-interest-based investment principles.

The Six AAOIFI Sukuk principles highlighted by the esteemed and learned Sheikh Taqi Usmani also highlighted these structural issues and are covered here.

financial gatekeeper literature to better understand the relationships CRAs have with issuers, investors, and other market participants. The paper makes a conceptual contribution in two ways. First, it contributes by employing interviews with 14 key credit market participants as illustration, allowing us to get closer to the theoretical constructs . Second, it contributes by extending gatekeeper perspectives from the audit literature to the under-explored ratings industry.

The sustainable investments industry has dramatically evolved in the last decades. More recently, investors have expressed interest in companies whose products contribute directly to addressing the 17 Sustainable Development Goals (SDGs). Since measuring the positive contribution of investments in reaching these goals is no easy task, this student report gives actionable tips that allow investors to better navigate among the various SDG-rating providers.

This work is licensed under a Creative Commons Attribution 4.0 International License. For decades, the credit rating market has been dominated by three major agencies (Moody's, S&P and Fitch Ratings). Their oligopolistic dominance is especially strong in sovereign credit ratings industry, where they hold a collective global share of more than 99%. Global financial crisis and the Eurozone sovereign debt crisis exposed serious flaws in rating process and forced public authorities to act. This study investigates effectiveness of new regulations adopted in the United States and in the European Union after financial crises in terms of reducing oligopolistic dominance of the "Big Three" in sovereign credit ratings market. The study applies descriptive statistical analysis of economic indicators describing concentration rate in a market, as well as content analysis of legal acts and case study methodology. Analysis shows that the Dodd-Frank reform and new European rules on supervision of credit rating agencies were not effective enough and did not lead to the increased competition in the market. The evidence from this study is explained using two alternative perspectives-economic theory of natural oligopoly and hegemonic stability theory coming from international relations field. potential conflict of interest (issuers must pay the CRAs to rate their securities), low quality of ratings, pro-cyclical behaviour, unreliable methodology, promoting neoliberalism as the only alternative for political economy, etc. This paper focuses on an

В работе прослежена эволюция подходов к оценке кредитоспособности и рейтингования экономических субъектов, рассмотрены особенности регулирования рейтинговой деятельности в России и других странах – участниках базельских соглашений, а также особенности рейтингов разных агентств. Систематизированы основные направлений исследований в области анализа рейтингов и кредитоспособности.

The article reviews the evolution of credit risk evaluation over the last 50 years from the financial coefficients to the credit ratings. Some related issues are discussed - they are the rating agencies’ activity, the structure of the ratings market, the peculiar properties of international and Russian ratings markets. The types of credit risk modeling researches are classified.

Premessa
L’idea di aprire un dibattito nell’ambito
della comunità degli addetti ai lavori sul
problema della discrezionalità
oligopolistica con cui le Agenzie di rating
operano nel mercato mondiale,mi è
venuta assistendo a un recente dibattito
televisivo con un uomo politico di
primissimo piano del passato Governo
che ha dimostrato palesemente di non
conoscere affatto la realtà e il
funzionamento di tale professione.
Purtroppo tale lacuna conoscitiva non
investe soltanto molti esponenti della
politica, ma sembra non essere del tutto
assente anche in parte del mondo
economico finanziario, soprattutto se si
considerano alcuni dettagli “tecnici”
importanti che aprirebbero uno
squarcio di luce sulla “sostanza grigia”
della questione.
Perché le Agenzie di rating per le loro
valutazioni al posto del “gergo a letterine
seguite da + e –“ (vedasi Tavola 1) non
utilizzano un semplice valore numerico
per la definizione del rischio di credito,
facilmente comprensibile e comparabile,
se esiste? Ma certo che esiste! È la
Probabilità di default (PD), ovvero la
probabilità di fallimento o insolvenza
dello strumento finanziario, della società
o dell’ente emittente.

Este trabalho tem o objetivo de analisar a eficiência do modelo de credit scoring na ação de cross-selling para proporcionar uma maior rentabilidade alinhada ao risco do novo produto. O estudo resultou em 3 cenários de rentabilidade e desempenho. No Cenário 1 sem uso do escoramento apresentou rentabilidade de R$ 0,5 milhões e inadimplência de 16,1%. Nos demais cenários com uso de escores as rentabilidades ultrapassaram R$ 2,3 milhões e inadimplências abaixo de 9%. Os Cenários 2 e 3 apenas com escore de empresas Bureau. O Cenário 4 inclui o modelo Crédit Scoring desenvolvido neste trabalho, apresentou a melhor discriminação entre clientes bons e maus e a maior taxa de aprovação, sendo 75% contra 64% do melhor Bureau. Para isso, utilizou-se de dados fornecido por uma instituição financeira. Utilizando o SPSS e técnicas estatísticas, a análise de Risco Relativo, construção de dummies e a análise de correlação de Spearman, foi gerado o modelo de Regressão Logística Binária, validado com o teste Kolmogorov-Smirnov, a Curva ROC e outros. O modelo de Credit Scoring desenvolvido apresentou resultados satisfatórios quanto a seu poder de classificação dos clientes. A eficácia da Regressão Logística, como ferramenta de predição de performance de crédito, habilita a aplicação da utilização do modelo Credit Scoring pela instituição financeira provedora dos dados para melhorar a rentabilidade e a inadimplência da carteira de clientes com Cartão de Crédito oriundo da carteira de clientes do empréstimo Consignado.

Palavras-Chave: Credit Scoring. Cross-Selling. Risco de Crédito. Rentabilidade.

Purpose-This study is a comparative analysis of the magnitude of economic growth as a key determinant of long-term foreign currency sovereign credit ratings in 30 countries in Africa, Europe, Asia and Latin America from 2010 to 2018. Design/methodology/approach-The analysis applies the fixed effects (FE) and random effects (RE) panel least squares (PLS) models. Findings-The authors find that the magnitude economic coefficients are marginally small for African countries compared to other developing countries in Asia, Europe and Latin America. Results of the probit and logit binary estimation models show positive coefficients for economic growth sub-factors for non-African countries (developing and developed) compared to negative coefficients for African countries. Practical implications-These findings mean that, an increase in economic growth in Africa does not significantly increase the likelihood that sovereign credit ratings will be upgraded. This implies that there is lack of uniformity in the application of the economic growth determinant despite the claims of a consistent framework by rating agencies. Thus, macroeconomic factors are relatively less important in determining country's risk profile in Africa than in other developing and developed countries. Originality/value-First, studies that investigate the accuracy of sovereign credit rating indicators and risk factors in Africa are rare. This study is a key literature at the time when the majority of African countries are exploring the window of sovereign bonds as an alternative funding model to the traditional concessionary borrowings from multilateral institutions. On the other hand, the persistent poor rating is driving the cost of sovereign bonds to unreasonably high levels, invariably threatening their hopes of diversifying funding options. Second, there is criticism that the rating assessments of the credit rating agencies are biased in favour of developed countries and there is a gap in literature on studies that explore the whether the credit rating agencies are biased against African countries. This paper thus explores the rationale behind the African Union Decision Assembly/AU/Dec.631 (XXVIII) adopted by the 28th Ordinary Session of the African Union held in Addis Ababa, Ethiopia in January 2017 (African Union, 2017), directing its specialized governance agency, the African Peer Review Mechanism (APRM), to provide support to its Member States in the field of international credit rating agencies. The Assembly of African Heads of State and Government highlight that African countries are facing the challenges of credit downgrades despite an average positive economic growth. Lastly, the paper makes contribution to the argument that the majority of African countries are unfairly rated by international credit rating agencies, raising a discussion of the possibility of establishing a Pan-African credit rating institution.

China’s Social Credit System (SCS) has captured the imagination and power of big data technology. Launched at the national level in 2014, the system’s aim is to assess the trustworthiness of Chinese citizens in keeping their promises and complying with legal rules, moral norms, and professional and ethical standards. It is essentially a collaborative project between the authorities and the business sectors to rate both individuals and other entities. In certain contexts, each individual will be given a social credit score or rank. Despite the claimed good will to curb escalating dishonesty across societal sectors in China, the worry is that the totality of individuals’ lives will be captured, that citizens will be monitored and that the Orwellian state will become a reality. Individuals risk being reduced to transparent selves before the state in this uneven battle. They are uncertain about what contributes to their social credit scores, how those scores are combined with the state system, and how their data is interpreted and used. In short, the big data-driven SCS is confronting Chinese citizens with major challenges to their privacy and personal data, amongst other interests critical to them.

This article first maps out the background to the construction of China’s big data social laboratory and the SCS, and then summarises the legislative history and evolving concept of social credit. It stresses that apart from the conspicuous SCS policy document introduced by the Chinese central government, pilot legislation has already been implemented at the local levels to regulate the collection and processing of social credit data. The third part critically reviews such local legislation (which often uses the term ‘public credit information’) with reference to personal data protection principles. It also highlights the restrictions on the data subjects’ rights that are placed by the uncoordinated legal framework of personal data and the extra-legal regime of personal archive. It argues that existing legislation and proposed regulations require substantial revisions to mitigate the impacts of the SCS on data privacy. This article hopes to lay the groundwork for further legal study related to social credit and big data in China.

Uluslararası finansal ve ekonomik bütünleşmenin artmasıyla birlikte, ülke kredi notları küresel sermaye akımını yönlendiren en önemli unsurlardan biri haline gelmiş ve kredi derecelendirme kuruluşlarının (KDK) küresel ekonomi ve ülke ekonomileri üzerindeki etkileri artmıştır.  Bununla birlikte, 1990’lı yıllarda yaşanan ekonomik krizlerde ve 2008 yılında başlayan küresel krizde iyi bir sınav veremeyen KDK’lar, giderek artan eleştirilere maruz kalmaktadır.
Kalkınma sürecinin hızlandırılması açısından dış finansman ihtiyacı yüksek bir yapıya sahip olan Türkiye ekonomisi için, KDK’ların ve kredi notu (credit rating) belirleme yöntemlerinin iyi analiz edilmesi önem arz etmektedir. Bu çalışmanın amacı, KDK’ların ülkelere verdikleri kredi notlarının sistematiğini inceleyerek tutarlılığını sorgulamak ve kredi notunun belirleyicilerini tespit ederek ülke kredi notunun artırılabilmesi için politika önerileri sunmaktır. Bu kapsamda, tersine mühendislik yöntemiyle yapılan panel veri analizleri sonucunda; kişi başına düşen milli gelirin, yönetişim kalitesinin, cari işlemler dengesinin, büyüme performansının, büyüme beklentilerinin, sanayileşmiş ülke olmanın ve ülke para biriminin rezerv para olarak kullanılmasının ülke notunu artıran faktörler olduğu görülmüştür. Buna karşın, döviz kuru oynaklığı, faiz ödemeleri, borç yükü seviyesi ve geçmişte temerrüt yaşanmış olması ise ülke kredi notunu düşüren etkenler olarak öne çıkmaktadır. 
Çalışmanın sonuçları KDK’lara karşı yapılan krizleri öngörememe ve ani not değişimleriyle mevcut krizleri daha da derinleştirme eleştirilerini desteklemektedir. Analizler Türkiye’nin ülke kredi notunun, özellikle 2004 yılından itibaren, sürekli olarak göstergelerin ima ettiği değerin altında kaldığını, 2012 yılındaki kredi notunun ise BBB (Baa2) düzeyinde olması gerektiğini göstermektedir. Analiz sonuçlarından elde edilen ülke kredi notunun belirleyicileri ve KDK’ların Türkiye ekonomisine yönelttiği eleştiriler göz önüne alındığında, yüksek cari işlemler açığı ve düşük yurtiçi tasarruf oranı kredi notunun artmasının önündeki en belirgin problemler olarak öne çıkmaktadır. Söz konusu problemlerin çözümü için Onuncu Kalkınma Planında yer alan politikaların ve öncelikli dönüşüm programlarının etkin bir şekilde hayata geçirilmesi büyük önem arz etmektedir. Bu kapsamda, Onuncu Kalkınma Planı politikalarının hayata geçirilmesi ve OVP (2015-2017) hedeflerine ulaşılması ve sonraki yıllarda da bu gelişmelerin devam ettirilmesiyle ülkemizin kredi notunun 2020 yılında “BBB+” düzeyine çıkacağı tahmin edilmektedir. Ayrıca, yönetim göstergelerinde yaşanacak daha hızlı bir iyileşme sonucunda ise kredi notunun 2020 yılında “A-” düzeyine kadar çıkabileceği öngörülmektedir.

This Regular Economic Report (RER) covers economic developments, prospects, and policies in six South Eastern European countries (SEE6): Albania, Bosnia and Herzegovina, Kosovo, FYR Macedonia, Montenegro, and Serbia. The report is produced twice a year by staff of economists at the World Bank Europe and Central Asia Region Poverty Reduction and Economic Management Department (ECA PREM). The team of authors is led by Gallina Andronova Vincelette, Željko Bogetić, and Abebe Adugna; the following team members have thematic and/or country assignments: Simon Davies (fiscal and debt; and Bosnia and Herzegovina); Agim Demukaj (external sector; and Kosovo); Doerte Doemeland, Nikola Kojucharov, and Ivan Kusen (labor market; monetary policy; inflation developments); Raquel Letelier (financial sector); Anil Onal (database management; and Albania); Lazar Sestović (real sector; and Serbia); Sanja Madzarević-Sujster (Montenegro); Bojan Shimbov (financial sector, FYR Macedonia), Ekaterine Vashakmadze and Mizuho Kida (global developments and outlook); Maria Andreina Clower, Christopher Pala, and Budy Wirasmo provided invaluable assistance in editing and designing this report.

This paper explores the viability of Altman Z-Score for predicting agency credit ratings and equity returns of large, high-quality industrial companies. The hypotheses are that the Z-Score reflects similar implied default probabilities like agency edit ratings and is therefore translatable into letter grades. A Logit model is designed to test this and performances well for portfolios of homogeneous securities. With respect to equity  investments it is shown that small equity returns are found in stocks that are classified as  “gray” and high returns are found in relatively safe stocks.

This study sought to establish how various credit risk management practices affect performance of commercial banks in Nyeri County in Kenya. Even though commercial banks face several types of risks, credit risk stands out as the most severe. Credit risk is the possibility of loss to the lender on non-performing loans. Financial practice as well as theory provides a scientific process of credit risk management in financial institutions. However, lenders still face loan default and consequently this study sought to find out how those practices affect the performance of commercial banks in Nyeri County, Kenya. A census study was conducted where a population of 86 respondents was targeted comprising of branch managers, credit managers and credit officers. The findings of the study were that all commercial banks had a well written credit policy which is strictly and consistently followed. Only few commercial banks conduct a quantitative credit scoring model. In all banks, initial screening is done by credit officer and approval done at different levels depending on the amount. Majority of the banks check post borrowing activities of the borrower. In conclusion, credit risk management has an effect on loan performance amongst commercial banks. Thus, managers should evaluate more accurately the ability to pay back of a customer since the better the screening the better the performance of commercial banks.

These are the proceedings from the Conference on Reforming the Public Expenditure Management System, which offered an opportunity to discuss a variety of policy recommendations and proposals. It is expected that these will provide momentum for reforming the public expenditure management system in Korea, and serve as references for fiscal reform in other countries as well. Moving towards a Medium-Term Expenditure Framework (MTEF) involves building upon the current budget and policy decision-making process, with an aim to overcome some of the current incentives in the process and improve public expenditure decisions and management. Discussion papers explore the stages of a MTEF process, the role of some of the key institutions in the MTEF process, and references international practices to illustrate points. Further papers discuss MTEF implementation in Korea through the starting point of reform, key issues for introducing MTEF and top-down budgeting, as well as the successful installa...

The primary aim of the study was to assess the performance of Ghanaian banks using the CAMELS rating model. The model is an acronym for capital adequacy, assets quality, management efficiency, earning, liquidity, and sensitivity. The rating is based on ratio analysis of the financial statements together with an onsite examination by the regulatory authority. A total of 10 banks were selected for a seven-year period. A standard multiple regression was employed in the study to analyze the effect the various components of the CAMELS model have on the performance of banks in Ghana. The findings from the analysis of the computed ratios from the financial statements of the selected banks indicated that Earning stood out as the highly significant factor that affects the performance of banks in Ghana. A percentage change in earning will result in a whopping 82.5% increment in bank performance measured by ROE. Capital adequacy, assets quality, management efficiency, and liquidity were equally found to be significantly affecting the performance of Ghanaian banks. Sensitivity, on the other hand, was found to be the only insignificant factor of the CAMELS model that affects the performance of banks in Ghana.

Institutional investors are becoming ever more aware of the potential risks and opportunities associated with environmental, social and governance (ESG) factors. From natural resource scarcity to changing governance standards, from supply chain and labor management concerns to evolving regulatory landscapes, it has become increasingly important for socially responsible investment (SRI) professionals to understand the ESG profile behind the assets they are managing. Hence, the access to relevant, consistent, comparable, balanced and reliable ESG information has become a prerequisite for asset managers to take the right investment decisions.

The financial services market has responded to this need by producing specific ESG ratings, rankings and indices. These services serve asset managers of SRI portfolios with the analytical information they would need to assess the ESG performance, risks, and opportunities of assets-under-management (AUM).

The objective of this research paper is to examine the relevance of ESG ratings for SRI decisions from a market perspective and to identify the dynamics that affect the development of the ESG ratings industry in the future.

In the monograph the author proposes and operationalizes the notion of “charts power” (or “index power”, “ratings power”) as a significant component of soft power of national states and international institutions. The author proves that numerous comparative ratings of different countries that have become extremely popular in recent decades could be used as an effective tool of influence and even an economic weapon. Charts power can influence the economy of various countries, their educational and
scientific systems, external image and legitimacy of political regimes. The mechanisms of ratings power and emergence of “rating thinking” are analyzed as well in the monograph. The author concludes about the importance of actual and potential threats to
national security of the Russian Federation from charts power of the foreign states. Taking into account the fact that charts power is obviously used by the West in its economic and information struggle with Russia the author proposes a number of recommendations
how to wither and neutralize this relatively new and disguised external threat.

Repeated crises have proven credit rating agency (CRA) models/methods erroneous and ‘business-as-usual’ unsustainable. Nevertheless, considerable dubious ‘default risk’ management and technoscientific capitalist expertise remain unchanged. Unpacking sovereign ratings, we appreciate how ‘debt sustainability analysis’ (DSA) distortions underpin expertocratic CRA (default) anomaly. Their neoliberal ‘politics of limits’ performance helps market (shareholder) imperatives trump those of democratic (stakeholder) politics. Given surging debt (distress) to remedy Covid-19-induced shocks, ratings aid constitute and (re)validate the subjectivities/affinities and organizational conditions advancing a ‘self-equilibrating’, ‘self-generative’ agencement political economy of creditworthiness (PEC). Antagonizing sustainable budgetary government’s programmatic/expertocratic and operational/democratic asymmetry, econophysics ratings diminish fiscal sovereignty. Universal PEC management through hybrid credit risk/uncertainty qualculation mitigates negative externality contestation shielding CRAs from serious reform. Ratings procyclicality and contagion reinforce this precarious sociotechnical agencement PEC as the status quo.

Widespread, precarious credit risk management and technoscientific expertise precipitating and exacerbating repeated crises remain taken-for-granted and virtually unaccountable. Especially evident in the ratings space, this paper analyses how geometric-based (sovereign) “debt sustainability analysis” (DSA) informs (fixed-income) futurity financialization. An in-depth study of primary-source documentation and semi-structured interviews helps problematize the (disinflationary) political economy of creditworthiness (PEC). The deconstruction/reconstruction of credit rating agency (CRA) and investor hybrid ‘default risk/uncertainty’ managerial modalities of expertise DSAs reveals how sociotechnical rating methods/modeling synergies promote ‘business-as-usual.’ Advancing the study of business management through economic sociology, we document how suspect algorithmic/geometrics-dominant ‘expertocracy’ – knowledge-based expert rule – (re)validates the organizational conditions and broader market affinities embedding a crisis-prone PEC. Technoscientific ratings constitute and reproduce an (artificial) ‘inertia’ and mutual (CRA/investor) mitigation effects buffering against serious contestation and reform. Unpacking S&P, Moody’s, and Vanguard platforms, we study scores Passive/Active management facilitation in their operational contexts to better explain their analytical, organizational, and normative CRA correspondence, perpetuating precarious PEC conditions. Ratings (reflexive) portfolio performance reinforces a (neoliberal) referential/data infrastructure PEC status quo, we demonstrate, amplifying national democracy and global (corporate) expertocracy asymmetries. Necessary for rebalanced alternatives, our scrutiny aids disturb seemingly ‘self-systemic,’ thereby ‘self-regulating,’ (neoliberal) capitalist agencement PEC dominance. Otherwise, increasingly, market instability, authoritarian populist backlash, and climate crises jeopardize ratings programmatic.

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Il presente studio, condotto in occasione della mia tesi di laurea, ricostruisce i profili tipologici che connotano il modello giuridico dell' agenzia di rating, analizzando le normative cui esse sono soggette negli Stati Uniti ed in Europa, per giungere ad una disamina approfondita delle problematicità riscontrate dalla dottrina e dalla giurisprudenza nel delineare il regime di responsabilità ad esse applicabili. L' indagine trova fondamento nel contesto storico recente caratterizzato dalla persistenza di una crisi finanziaria internazionale che ha posto in discussione la presunta capacità di autoregolamentarsi efficacemente da parte degli operatori di mercato.

As debts surge, at the heart of the struggle to constitute the ‘politics of limits’ – the parameters defining the budgetary realities facing governments – is the growing antagonistic relationship between the imperatives of corporate (financial) markets and national, democratic politics. Through an innovative analytical instrumentality, this novel interdisciplinary account problematizes credit ratings and the problem of sovereign debt to show how the authoritative knowledge underpinning the political economy of creditworthiness is constructed through the deployment of the discursive modes of risk and uncertainty management. Unpacking the 'black-box’ of sovereign ratings, as socio-technical devices of control and government, we better understand how their authoritative capacity and utility are constituted through their performative effects. These help create the conditions and subjectivities that serve to validate and regenerate a disinflationary fiscal normality/rectitude. Political judgment is censured through depoliticizing risk techniques; as a (fallacious) analytics/mechanics of sovereign ratings helps elevate (quantitative) techno-scientific expertise and relegates competing, qualitative approaches in the actualization of a neoliberal politics of limits. This exacerbates the asymmetry between expertocracy/epistocracy and democracy, which prompts (populist) backlash and attempts to reclaim diminishing fiscal sovereignty.

Analysing the European Union's regulatory response in the wake of the credit and sovereign debt crises, this paper argues how its adoption of risk management as the core strategy for governing the credit ratings space may undermine European efforts to rebalance the growing asymmetry between private expertise and public democracy. While centralised oversight, enhanced transparency and restorative, technical intervention seem like sound regulatory initiatives, I problematise the methodologies, models and assumptions of sovereign ratings to show how the new ratings framework may actually impede the ability of the technocratic European Securities and Markets Authority (ESMA) to redress the most egregious deficiencies of ratings. Drawing on the performativity of market relations, the paper argues how ESMA's supervisory conflicts undermine the EU's capacity to perform an alternative political economy of limits. Neither is it democratically sanctioned to interfere in the analytical substance of ratings nor should it distort the social facticity of creditworthiness by relying primarily on quantitative risk analysis, ESMA will be forced to either repoliticise the ratings process or promote the status quo, which diminishes fiscal sovereignty.

Alternative lending platforms provide an end-to-end loan experience through digital delivery, from application and origination to underwriting and servicing. Alternative lenders perform the credit underwriting process and approve or decline a loan application based on the borrower’s risk score in near real-time, relying heavily on proprietary
algorithms and the collection of different sources of data directly from the borrower or third parties.

To understand the growing interest in alternative lending, it is important to first understand India’s demographic landscape. With digital footprints limited to a small size of the overall population, a majority of people still rely on primitive methods to procure funds, such as borrowing money from social groups and their families. Moreover, for a large percentage of individuals, past credit history is either incomplete or unavailable altogether. The traditional method of generating credit scores has prevailed through the years, with credit bureaus mainly relying on credit card and loan history details for generating scores. This reliance on past credit history poses a significant lending challenge for financial institutions.

This research project aims to explore the potential of alternative credit lending platforms for the identification of client markets among adults. As many segments of the economy are underserved by formal financial institutions, this research is aiming to identify the gaps for alternative lending to capture a huge potential market among adults.

Le financement est un des instruments importants pour faciliter et appuyer les producteurs dans leur adaptation aux nouvelles exigences en tenant compte des aléas climatiques et du marché. L'ensemble des études consacrées à l'agriculture montre que cette dernière est marquée par une sous-capitalisation qui traduit un sous financement manifeste au niveau de l’exploitation agricole et du secteur en général, ce qui affecte négativement et de manière significative la production et le revenu agricole surtout dans les petites exploitations agricoles familiales exclues du système de financement.
Les problématiques ne manquent pas dans le milieu rural, en particulier, au niveau de l’exploitation agricole. Les limites inhérentes au financement, l’endettement, l’épargne et l’investissement sont plus visibles au niveau de l’agriculture familiale. Pour voir la totalité de l'article cf. www.bajeddi.com

9 I costi di informazione sono infatti annoverati fin dalle analisi giuridico-economiche più risalenti tra i costi di transazione che impediscono alle controparti di contrattare tra di loro raggiungendo la soluzione più efficiente tra quelle disponibili, v. già COASE, R.H., The Nature of the Firm, in

The globalization and liberalization of economies trigger the expansion of the
volume of capital markets. Parallel to this developments, the use of corporate bonds,
one of the most important tool of capital markets, become widespread. This
situationincreasesthe need forbondrating which is an indicator ofquality.
Turkey, met with corporate bonds in 1970s, could not provide the
development of corporate bond market and consequently development of bond and
capital market, due to the crowding out of private sector by the need for higher
public borrowing, tax disadvantages and uncertaintybrought byhighinflation.
However, the recent downward trend in inflation and interest rates, The
CentralBank'soptimisticreports and regulations about taxation has brought the
corporate bonds to the agenda again as an alternative finance source.
The ratios related with the long-term bond ratings and financial statements of
the corporates which are in the sample was analyzed by multiple discriminant
analysis, ordered logit and ordered probit analysis techniques. The analyses has two
essential points to be emphasized. The first one is to construct models by these three
methods which are commonly used in corporate bond rating and thus to contribute to
the literature. The second one is to obtain the ratios which result in higher rating
grades.
According to the study, operating income, debt ratios and return on equity
ratios are found to be the factors which have the biggest impact on corporate bond
rating. Comparedwith the results ofthe previousstudies, similar findings are obtained
indicating the consistency of findings.
Keywords: Corporate Bond Rating, Multiple Discriminant Analysis, Ordered Logit
Regression Analysis, Ordered Probit Regression Analysis

Crypto­property is one of the most rapidly growing classes of economic assets nowadays. There are several protocols that determine working principles of the cryptocurrencies as well as several protocols that enable creation and accounting of crypto assets. Owing to unique value proposition, an explosive growth of crypto property is inevitable. The new emerging class of economic assets and corresponding economic system have early stage problems such as lack of clear definitions of basic terms, weak understanding of the value proposition, lack of understanding of how to assess risks and evaluate potential growth. The widely­ used corporate credit rating methodologies such as S&P, Fitch, Moody's based on IFRS, GAAP, and sovereign accounting report systems are not applicable to crypto property and thus cannot solve the above issues. This paper defines some basic terms for crypto property, outlines basic approach to their risk assessment, and proposes a decentralized solution for the evaluation of crypto property without the necessity for expensive audit procedures.

Multilateral development banks depend on international capital markets for much of their financing. This, in turn, means that MDBs must obtain strong bond ratings from the major credit rating agencies. However, these agencies - in particular Standard and Poor's - are using a methodology that fundamentally underestimates the financial strength of MDBs, with negative impacts on the ability of MDBs to pursue their development mandate.

The growth of shadow banks changed the face of banking in Zimbabwe. Their inconsistent product nature and complexity of form has been a cause for concern to regulatory authorities. The interrelationship between their financial intermediary role and that of formal banks has made them good substitutes to formal banking. This study conducts a statistical analysis of the country's monetary aggregates and the total formal bank loan-to-deposits balances. The findings of this analysis show that the shadow banking system has always been a critical element of the formal banking sector which resulted from market needs and it completes the banking system. The shadow banking system does not pose direct threat to the formal banking system but it was a result of failure to attract savers who found shadow banks as a good alternative.

Mit einer Reihe so genannter Derivateunfalle, Unternehmenszusammenbrüchen auf Grund mangelnder Risikovorsorge durch Vorstand oder Aufsichtsrat, insbesondere aber durch die zuletzt dramatisch gestiegenen Insolvenzzahlen erhöhte sich das Risikobewusstsein in Banken und Unternehmen. Im Unternehmensbereich erfolgte 1998 ein Schritt zum bewussten Umgang mit Unternehmensrisiken durch das Gesetz zur Kontrolle und Trans­parenz im Unternehmensbereich (KonTraG). Das KonTraG schreibt allen Aktiengesell­schaften die Einrichtung eines Risikomanagements zur Früherkennung existenzgefähr­dender Risiken vor. Im Bankenbereich verfolgt der Baseler Ausschuss das Ziel der Sicherung und Stabilisie­rung der Finanzmärkte. Nach den neuen Vorschriften (Basel II) bemisst sich die Eigen­kapital-Unterlegungspflicht der Kreditinstitute nach dem Rating bzw. der Ausfallwahr­scheinlichkeit des Kreditnehmers. Banken arbeiten derzeit mit Hochdruck an internen Ratingsystemen. Die Unternehmen sind nun aufgefordert, sich durch die Einrichtung ei­nes Risikomanagementsystems auf die gestiegenen Ratinganforderungen aktiv vorzube­reiten. Jedoch geben weder das KonTraG noch die Baseler Vorschriften Hinweise auf die operative Ausgestaltung eines betrieblichen Risikomanagementsystems.