The Case for Public Sector Credit Rating Agencies

Roel Beetsma

University of Amsterdam, CEPR and CESifo  

 

While the eyes of the world are now focused on the measures that the various governments have taken to protect their banking systems, attention to the causes of the current crisis seems to have shifted to the background. However, this crisis should be seized as an opportunity to provide the financial system with structural improvements, because once the crisis is over politicians will no longer perceive any need for improvements. Improvements concern financial supervision as well as the collaboration among countries in a situation of international financial unrest. They also concern, in my opinion, a change in the system of rating the creditworthiness of financial institutions.

Credit crisis is a missed opportunity to restructure European financial supervision

by Roel Beetsma (University of Amsterdam, CEPR, CESifo) and Sylvester Eijffinger (Tilburg University, CEPR, CESifo) Although the current credit crisis has (so far) only had a limited impact on the European financial sector, there is still a need to restructure European financial sector supervision. Currently, the responsibility for financial supervision is at the national level. […]