Differences of opinion and selection bias in the credit rating industry

Article Abstract:

The different regulations employed in assessing investment prohibitions and capital requirements for portfolio investments such as private sector credit ratings are evaluated on their suitability and on the existence of sample selection bias. Results indicate only minimal signs of selection bias and a limited use by firms of credit ratings to decrease uncertainties from default risk or to solve regulatory problems.

Author: Cantor, Richard, Packer, Frank
Consumer Lending, Personal credit institutions, Consumer Finance Institutions, Research, Evaluation, Consumer finance companies, Securities, Risk management, Credit ratings

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Financial regulation and financial system architecture in Central Europe

Article Abstract:

Attempts to develop the financial system in Central Europe are discussed. This region's financial sector is still characterized by substantial divergence and instability.

Author: Scholtens, Bert
Financial Services, Finance and Insurance, Economic aspects, Financial services industry, Eastern Europe, Central Europe

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