market, the banks play an important role as financial intermediaries. After the first period of an almost extreme credit … rationing during 1997 – 2001, the Bulgarian banks enhanced their willingness to lend and enlarged their credit product palette … lent by the banks increased quickly - a process, which worried the International Monetary Fund (IMF). It required specific …

of this regime for the investment incentives of banks in rating systems and the resulting welfare consequences. This is … are set by Basel II ? 2. What are the welfare consequences from opportunistic behavior of banks who choose to apply the … banks invest too little or too much in rating systems from a welfare standpoint of view ? The main result of the paper is …