The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) has published a discussion paper on the use of credit ratings by financial intermediaries in the EU.
The paper presents a set of questions to banks and other financial institutions and intermediaries concerning their reliance on credit ratings in their contractual practice, that is outside of the cases in which reliance on ratings is required by the existing regulatory framework. The questions are also addressed to national supervisors who are welcome to contribute their views on the subject.
The Joint Committee will use the replies to the discussion paper together with an independent study carried out by one of the most authoritative academics in the field to present in second quarter of 2015 a first draft of possible alternatives to credit ratings.
The closing date for responses is 27 February 2015.