BCBS WP3

Definition

BCBS WP3 is a document published by the Basel Committee on Banking Supervision on August 2000 in the Credit Risk category.

Title

Credit ratings and complementary sources of credit quality information.

Abstract

Bank regulation has made increasing use of external credit ratings in recent years and, in June 1999, the Basel Committee on Banking Supervision proposed a revision to the international capital accord that included a more prominent role for credit ratings. This study contains background information about credit ratings and complementary sources of credit quality information, which may be helpful to those revising the proposed accord and more generally to those interested in the use of credit ratings in regulation. The focus of the study is on factual information, rather than on subjective assessments or explicit policy recommendations. The material may be classified into four basic categories:

1. facts about the credit ratings industry, such as lists of rating agencies, the extent of their activities, market practices, etc.,
2. factual information about alternative sources of credit quality information,
3. summaries of the results of earlier research on credit ratings from various sources, including academics, supervisory institutions, and rating agencies, and
4. empirical work performed specifically for this study, intended to fill in a few gaps in the existing empirical literature.

Document Profile

• Publication Date: August 2000
• Publication Type: Working Papers
• Publication Status: Current
• Publication Category: Credit Risk
• Number of Pages: 186
• Keywords: Rating Agency, Credit Risk, External Ratings

See Also

• BIS Website: Web Page
• PDF File: Download

Disclaimers

For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.

The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).