ESMA published a Call for Evidence on the availability and use of credit rating information and data. The purpose of this Call for Evidence is to gather information on the specific uses of credit ratings as well as on how the users of credit ratings are accessing this information. Feedback to this call for evidence will enable ESMA to map the principal activities (regulatory and otherwise) undertaken by various types of users of credit ratings. Based on the feedback, ESMA will publish a report describing the current disclosure practices of credit rating agencies, including via third-party data service providers, as well as the consumption patterns of rating users. The call for evidence is open until August 03, 2020.
The Credit Rating Agencies Regulation (or CRA Regulation) aims to ensure that credit ratings used in EU are independent, objective, and of adequate quality. The CRA Regulation, among other measures, requires that only credit ratings that are issued by registered rating agencies or endorsed in accordance with the CRA Regulation can be used for regulatory purposes in EU, such as for the calculation of capital requirements. However, credit ratings are used for many other purposes or activities. With this Call for Evidence, ESMA aims to map the principal activities (regulatory and otherwise) undertaken by various types of users in which credit ratings are required as an input. ESMA aims for each activity, such as risk management, market research, and regulatory reporting, to identify users’ specific rating data needs (for example, format, frequency, scope, and downloadability) and how these needs correspond with the information that is provided on the European Rating Platform and on the public websites of the credit rating agencies. The Call for Evidence also aims to understand why users choose to subscribe to third-party data fee service providers instead of relying on the information published free of charge on the websites of European Rating Platform and credit rating agencies.
Comment Due Date: August 03, 2020
Keywords: Europe, EU, Banking, Securities, Call for Evidence, European Rating Platform, CRA Regulation, CRAs, Credit Rating Agencies, ESMA
Previous ArticleUS Agencies Adjust Calculations for Credit Concentration Ratio
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).