‘Unsolicited sovereign ratings and the sovereign-bank ceiling: An unintended consequence of regulatory disclosure’

We can look forward to another debut performance at the CCP Seminar Series on Friday 29th January 2016, as the magnificent Patrycja Klusak (CCP & NBS) takes the stage to present ‘Unsolicited sovereign ratings and the sovereign-bank ceiling: An unintended consequence of regulatory disclosure‘ (joint work with Rasha Alsakka and Owain ap Gwilym at Bangor University). Patrycja recently joined the Norwich Business School as a Lecturer in Banking and Finance and became a CCP Faculty Member in January 2016. Her numerous research interests include: analysing the regulatory changes to the Credit Rating Agency (CRA) industry, empirical banking and applied econometrics. An abstract for Patrycia’s paper can be found below.

Abstract

This paper integrates three themes on regulation, unsolicited credit ratings, and the sovereign-bank rating ceiling. We reveal an unintended consequence of the EU rating agency disclosure rules upon rating changes, using data for S&P-rated banks in 44 countries between 2006 and 2013. The disclosure of sovereign solicitation status for 13 countries in February 2011 has an adverse effect on the ratings of intermediaries operating in these countries. The unsolicited sovereign rating status transmits risk to banks via the rating channel. The results suggest that banks bear a penalty for the solicitation status of their host sovereign’s ratings, thus revealing an unintended and adverse impact of EU regulation.

The seminar takes place from 13:00-14:00 in QUEENS 1.04. Tea will be provided directly afterwards on Floor 0 in the Elizabeth Fry Building.

‘The 10 x 8 Meter Relay: An assessment of how introducing comparative information may induce inter-group competition in energy efficiency’

The CCP Seminar Series continues on Friday 22nd January 2016, where we will be treated to a debut performance by the brilliant Mike Brock (CCP & ECO) who joined the Centre as a member in June 2015. Mike has been a Lecturer in Microeconomics at the UEA School of Economics since August 2014 and has numerous research interests, including specialist interest in the relationship between environmental assets and subjective well-being. His seminar will introduce his most recent project, ‘The 10 x 8 Meter Relay: An assessment of how introducing comparative information may induce inter-group competition in energy efficiency‘. An abstract for his seminar can be found below.

Abstract

This presentation will introduce a new natural field study currently underway at UEA. The project provides weekly information to students living in Halls of Residence on their absolute and relative energy usage.  Provided at an aggregated (flat-level) degree, the motivation for this study is to decipher how and to what extent non-financial stimuli can be used to try and incite behavioural change and invite participants to consider their empirical choices and actions. The study forms part of a wider literature which seeks to assess how and why consumers can be induced into making more conscious decisions and the necessary level of persuasion and reinforcement such methods require to achieve long-lasting success.

The seminar takes place from 13:00-14:00 in the Elizabeth Fry Building, Room 01.10. Tea will be provided directly afterwards in the Elizabeth Fry Staff Room.

‘Recent Competition Policy and Law Developments in China and Hong Kong’

After a short break, the CCP Seminar Series returns in 2016 with another inspiring line-up of presentations on competition policy (you can find out more by clicking here). On Friday 8th January 2016, we are delighted to welcome Mark Williams (Asian Competition Forum and Melbourne Law School) who will be kicking-off the year with his dissection of the ‘Recent Competition Policy and Law Developments in China and Hong Kong‘. Mark is the Executive Director of the Asian Competition Forum, as well as a Professor of Law at the University of Melbourne Law School where he teaches inter alia competition law and Hong Kong company/commercial . An abstract for his seminar can be found below.

Abstract

Mainland China brought the Antimonopoly Law into force in 2008. The intensity of enforcement has increased markedly in the last two years, especially in relation to business conduct within its territory as opposed to global mergers that have some effect on Chinese markets. Whilst the application of the merger rules has been relatively orthodox, there has been increasing concern about the activities of the NDRC and SAIC with regard to ‘price monopoly’ cases. Transparency and due process issues have caused considerable anxiety, especially amongst the international business community and it is noteworthy that there have been no judicial appeals against any decision of the Chinese agencies since the antitrust system became operational. In Hong Kong, which retains its separate common law -based legal system, the Competition Ordinance only became fully operational on 14 December 2015. This structurally flawed system, that has no merger control provisions save in the telco sector, and adopts a judicial enforcement model, is, necessarily, wholly untried. This seminar will concentrate on recent developments in both systems and the challenges they face to attain international credibility.

The seminar takes place from 13:00-14:00 in the Thomas Paine Study Centre, Room 1.03. Tea will be provided directly afterwards in the MBA Café (TPSC, Floor 2).