scholarly journals Assessing methodology of banks' ratings and their competitive positions: overview of main rating agencies

2020 ◽  
Vol 28 (1) ◽  
pp. 23-30
Author(s):  
Elena M. Grigorieva ◽  
Darko Vukovic
Keyword(s):  
Credit Rating ◽  
Financial Indicators ◽  
Macroeconomic Factors ◽  
Rating Agencies ◽  
International Literacy ◽  
The Future

This paper analyzes methodologies of credit rating assessment of major rating agencies, with the focus on Fitch Ratings (Fitch). The methodology data were collected from Fitch Ratings. Also, the article review international literacy for factors and indicators adequacy in rating assessments. The purpose of this research is to overview literacy for the primary methodologies of banks' credit rating assessment. It was explained that ratios from financial indicators are most important for credit rating assessment. In some cases, in sovereign countries, support and macroeconomic factors are significant. We concluded that this area is still not enough researched and that in the future, the number of studies will appear with different methodological proposals and improvements.

scholarly journals BANK CREDIT RATINGS AS A RELIABILITY INDEX: (OBJECTIVITY OR A FINANCIAL MARKET DEMAND)

Banking law ◽  
2020 ◽  
Vol 6 ◽  
pp. 7-19
Author(s):  
Gulnara F. Ruchkina ◽  
Keyword(s):  
Financial Market ◽  
Reliability Index ◽  
Credit Rating ◽  
Credit Ratings ◽  
Bank Credit ◽  
Credit Rating Agencies ◽  
Financial Indicators ◽  
Market Demand ◽  
Rating Agencies ◽  
The Law

Separate provisions of the law regulating the activities of credit rating agencies are analyzed. Attention is drowned to the implementation of the provisions of this law, which is implemented by by-laws of the Bank of Russia. Examples of ratings assigned to banks by financial supermarkets are given, as well as up-to-date information in the form of tables about credit ratings assigned to banks. It are concluded that the ratings assigned to banks are more informative in comparison with the financial indicators of banks posted on official websites, as part of the assessment of their financial reliability.

scholarly journals Present and Future Position of Credit Rating

2012 ◽  
Vol 12 (2) ◽  
pp. 160-174
Author(s):  
Danuta Dziawgo
Keyword(s):  
Financial Market ◽  
Credit Rating ◽  
Safety System ◽  
Rating System ◽  
Credit Rating Agencies ◽  
Work Quality ◽  
Rating Agencies ◽  
The Future ◽  
Future Position

Abstract The aim of the elaboration is to draw attention to selected aspects of credit rating. For that reason, comparison and induction methods were used. The article deals with credit rating and its present importance for the financial market. On that basis, possible scenarios for credit rating importance in the future will be analysed. Nowadays, the credit rating system and credit rating agencies’ behaviour and work quality are discussed worldwide. Therefore, the article can be seen as a voice in the discussion about future architecture of financial market and safety system net.

Effectiveness of Government Regulation of the Banking Sector: Assessment and Rating of Banks

2020 ◽  
pp. 85-95
Author(s):  
Halyna O. Kryshtal
Keyword(s):  
Government Regulation ◽  
Banking Sector ◽  
Credit Rating ◽  
Analytical Data ◽  
The State ◽  
Economic Sector ◽  
Rating Agencies ◽  
Depth Study ◽  
State Regulator ◽  
Almost All

The article deals with the causes of the negative situation in the banking sector, as the state of the bank depends on the analysis of almost all aspects of banking activity for some time. It is determined that during the banking sector audits, the state regulator uses analytical data on the banking sector's operations with its monetary obligations, compliance with maturities and maturities of assets that operate and terms and amounts of liabilities, namely, dealing with banking sector liquidity. As their financial reliability is important in the banking sector, therefore, bank clients are a socio-economic sector, needing an objective and independent assessment, as reliability directly affects the socio-economic development of the country. The banking sector was analyzed in 2016-2019 and it was found that during this period violations of laws and regulations issued by the state regulator were made in the banking sector. A number of penalties, written warnings and administrative penalties were applied by the state regulator. The method of determining the rating of banks in respect of which penalties were applied by the state regulator is proposed. The rating allows investors and potential clients to understand the situation in the banking market and helps banks identify their weaknesses and correct their work. The application of the proposed economic and mathematical model in the rating of participants in the banking sector can have a positive effect on: improving the quality of management in the banking sector and transparency in the activities of each individual bank; standardization of technologies of rating of the banking sector under the prism of the applied sanctions by the state regulator. Therefore, there is a need for an in-depth study of the techniques used by credit rating agencies in the banking sector and the identification of the main problems in establishing the rating of the banking sector. Key words: banking sector, state regulator, economic sector, efficiency, rating, rating, social sector.

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