01725cas a2200241 a 4500 AALejournalIMF005866 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872767 1018-5941 BD-DhAAL BD-DhAAL Sy, Amadou. The Systemic Regulation of Credit Rating Agencies and Rated Markets / Amadou Sy. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Credit ratings have contributed to the current financial crisis. Proposals to regulate credit rating agencies focus on micro-prudential issues and aim at reducing conflicts of interest and increasing transparency and competition. In contrast, this paper argues that macro-prudential regulation is necessary to address the systemic risk inherent to ratings. The paper illustrates how financial markets have increasingly relied on ratings. It shows how downgrades have led to systemic market losses and increased illiquidity. The paper suggests the use of "ratings maps" and stress-tests to assess the systemic risk of ratings, and increased capital or liquidity buffers to manage such risk. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2009/129 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/129/001.2009.issue-129-en.xml IMF e-Library