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Banks’ Credit Ratings – the Impact of the Investor Type

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  • Patrycja Chodnicka-Jaworska

    (Department of Banking and Money Markets, Faculty of Management, University of Warsaw)

Abstract

The aim of the paper is an analysis of the determinants of banks’ credit ratings by taking into account the support from the government. A literature review has been prepared and the ensuing hypothesis seems as follows: Banks with the government capital receive higher credit ratings than institutions with private capital if financial factors are taken into account. The mentioned hypothesis has been verified with ordinary logit panel data models. Long-term issuer credit ratings proposed by three biggest credit rating agencies for banks from Europe have been used as dependent variables. The sample has been divided into subsamples according to the investor type, the bank size and the moment of a financial crisis.

Suggested Citation

  • Patrycja Chodnicka-Jaworska, 2018. "Banks’ Credit Ratings – the Impact of the Investor Type," Faculty of Management Working Paper Series 12018, University of Warsaw, Faculty of Management.
    • Handle: RePEc:sgm:fmuwwp:12018
    as

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    References listed on IDEAS

    as
    1. Nakamura, Leonard I. & Roszbach, Kasper, 2018. "Credit ratings, private information, and bank monitoring ability," Journal of Financial Intermediation, Elsevier, vol. 36(C), pages 58-73.
    2. Beltratti, Andrea & Stulz, René M., 2012. "The credit crisis around the globe: Why did some banks perform better?," Journal of Financial Economics, Elsevier, vol. 105(1), pages 1-17.
    3. Treacy, William F. & Carey, Mark, 2000. "Credit risk rating systems at large US banks," Journal of Banking & Finance, Elsevier, vol. 24(1-2), pages 167-201, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    credit rating; logit models; private banks; public banks;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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