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Prediction Of Banking Sector Condition

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  • Patrycja Chodnicka Jaworska

    (Faculty of Management University of Warsaw, Poland)

Abstract

The aim of the paper has been to analyse the European banking sector credit ratings. At first it has been presented the literature review that analyses the mentioned topic. As a result it has been put the following hypothesis: The banking sector credit ratings are strictly connected with the countrys notes. In the paper have been presented methodologies of the credit ratings agencies, that are used during the estimation of the banks default risks. The analysis of the condition of the banking sector has been prepared by using notes that are given by Fitch and S&P for banks from the Eurozone and Central and Eastern Europe. There have been collected data from the World Bank and reports prepared by the mentioned agencies.

Suggested Citation

  • Patrycja Chodnicka Jaworska, "undated". "Prediction Of Banking Sector Condition," Review of Socio - Economic Perspectives 201703, Reviewsep.
    • Handle: RePEc:aly:journl:201703
    DOI: https://doi.org/10.19275/RSEP009
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    References listed on IDEAS

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    1. Lennart Freitag, 2015. "Procyclicality and Path Dependence of Sovereign Credit Ratings: The Example of Europe," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 44(2), pages 309-332, July.
    2. Giuliano Iannotta & Giacomo Nocera & Andrea Resti, 2013. "Do investors care about credit ratings? An analysis through the cycle," Post-Print hal-00994322, HAL.
    3. Harald Hau & Sam Langfield & David Marques-Ibanez, 2013. "Bank ratings: what determines their quality? [Bank risk during the financial crisis: do business models matter?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(74), pages 289-333.
    4. Iannotta, Giuliano & Nocera, Giacomo & Resti, Andrea, 2013. "Do investors care about credit ratings? An analysis through the cycle," Journal of Financial Stability, Elsevier, vol. 9(4), pages 545-555.
    5. Jiri Podpiera & Ms. Inci Ötker, 2010. "The Fundamental Determinants of Credit Default Risk for European Large Complex Financial Institutions," IMF Working Papers 2010/153, International Monetary Fund.
    6. Shen, Chung-Hua & Huang, Yu-Li & Hasan, Iftekhar, 2012. "Asymmetric benchmarking in bank credit rating," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(1), pages 171-193.
    7. Cesaroni, Tatiana, 2015. "Procyclicality of credit rating systems: How to manage it," Journal of Economics and Business, Elsevier, vol. 82(C), pages 62-83.
    8. C. H. Furfine & Jeffery D. Amato, 2003. "Are credit ratings procyclical?," BIS Working Papers 129, Bank for International Settlements.
    9. Frank Packer & Nikola Tarashev, 2011. "Rating methodologies for banks," BIS Quarterly Review, Bank for International Settlements, June.
    10. Winnie P. H. Poon & Junsoo Lee & Benton E. Gup, 2009. "Do Solicitations Matter in Bank Credit Ratings? Results from a Study of 72 Countries," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(2‐3), pages 285-314, March.
    11. Shen, Chung-Hua & Huang, Yu-Li & Hasan, Iftekhar, 2012. "Asymmetric benchmarking in bank credit rating," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(1), pages 171-193.
    12. Fei Fei & Ana-Maria Fuertes & Elena Kalotychou, 2012. "Credit Rating Migration Risk and Business Cycles," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 39(1-2), pages 229-263, January.
    13. Maksim Isakin & Alexander David, "undated". "Bayesian Persuasion in Credit Ratings, the Credit Cycle, and the Riskiness of Structured Debt," Working Papers 2015-13, Department of Economics, University of Calgary, revised 16 Jul 2015.
    14. Adrian Van Rixtel & Luna Romo González & Jing Yang, 2015. "The determinants of long-term debt issuance by European banks: evidence of two crises," BIS Working Papers 513, Bank for International Settlements.
    15. repec:zbw:bofrdp:2012_013 is not listed on IDEAS
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    More about this item

    Keywords

    Credit rating; Default risk; Banking sector;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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