We provide an assessment of the Basel Committee on Banking Supervision (BCBS) proposal to restrict the internal ratings-based approach on bank risk and to introduce risk-weighted asset floors. If well enforced, risk-sensitive capital regulation results in a more efficient credit allocation...

Zusammenfassung Seit der Finanzmarktkrise wurden viele unterschiedliche Regulierungsmaßahmen umgesetzt, um die Stabilität der Banken in Krisensituationen durch die Stärkung ihrer Kapitalbasis zu erhöhen. Neben den Reformen der Eigenkapital- bzw. der Eigenmittelvorschriften zählen dazu auch...

We provide insights into determinants of the rating level of 371 issuers which defaulted in the years 1999 to 2003, and into the leader-follower relationship between Moody's and S&P. The evidence for the rating level suggests that Moody's assigns lower ratings than S&P for all observed periods...