Does Europe Need Its Own Rating Agencies?

Giovanni Ferri and Punziana Lacuitignola
Additional contact information
Punziana Lacuitignola: University of Bari

No 33, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: Monetary unions generally boost financial markets. But European private capital markets have progressed at an unsatisfactory pace even with the euro. What accounts for this? We focus on an increasingly key financial infrastructure: Rating Agencies (RAs). Taking an international perspective, we show that: (i) financial market development increases with the presence of national RAs; (ii) in four studied Asian countries, smaller-sized companies disproportionately hold a rating from national RAs, while disregarding the global RAs (Moody’s, S&P, Fitch). We argue that the absence of European RAs may currently limit the extent of rated companies and financial market evolution in Euroland.

Keywords: national vs. global credit rating agencies; financial market development (search for similar items in EconPapers)
JEL-codes: G2 G3 (search for similar items in EconPapers)
Pages: 1035
Date: 2010-07, Revised 2010-07
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.seriesworkingpapers.it/RePEc/bai/series/Economia-Series33.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bai:series:economia-series33

Access Statistics for this paper

More papers in SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro" Largo Abbazia S. Scolastica, 53 - 70124 - Bari - ITALY. Contact information at EDIRC.
Bibliographic data for series maintained by Annalisa Vinella (annalisa.vinella@uniba.it).