Commission adopts report on feasibility of network of smaller CRAs

05 May 2014

The Commission adopted a report on the feasibility of a network of smaller credit rating agencies (CRAs) in the EU. It assesses how the establishment of such a network could contribute to the strengthening of smaller CRAs, facilitating their growth into competitive market players.

The report, addressed to the European Parliament and the Council, proposes the establishment of a regulatory dialogue with smaller CRAs. It also recommends that a full assessment of the feasibility to establish a more integrated network of smaller CRAs be carried out within the medium to long term when the overall impact of the recently enacted legislation can be effectively analysed.

"The Impact Assessment accompanying the CRA III Regulation made an initial analysis on the potential impact of the creation of a network of smaller CRAs on competition in the CRA market.

It concluded, based on a stakeholder consultation, that there is some support for the creation of such a network. Building on this work within the preparation of this Report, the European Commission has further assessed the added value of the creation of a network as well as the different possible options of the type of network which would best serve its purposes and be feasible to implement.

Taking the above into consideration, two types of networks have been envisaged, depending on the scope and nature of the proposed cooperation. The pros and cons of each option are presented below together with reflections on the logistical side of its implementation", so the report.

Full report

Staff working paper


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