Sebi targets credit rating agencies

The Indian market regulator, the Securities and Exchange Board of India (Sebi), has issued a set of guidelines that will make credit rating agencies more accountable to the users of ratings and shed light on how they rate companies.

The rating agencies have been asked to disclose their methodologies, fees charged from the companies they rate, conflicts of interest between the rating analysts and the companies rated by them, and the default rate of each agency.

Other requirements include more

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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