‘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.

About CCP
The Centre for Competition Policy (CCP) conducts interdisciplinary research into competition policy and regulation.

What do you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: