CEPS paper on reforms for the credit rating industry

18 October 2010

Karel Lannoo, Chief Executive Officer of CEPS, argues that despite having singled out CRAs early on in the financial crisis as needing more regulation, policy-makers in the EU seem not to be reassured by the measures that have been adopted in the meantime and want to go further.

This paper starts with an overview of the credit rating industry today. The second section analyses the use of credit ratings and shows how the authorities have created a captive or artificial market for CRAs. Section 3 reviews the new EU CRA regulation and its possible impact, and the final section compares proposals for regulatory reform.

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