In the past few years, there has been an upsurge in the number of FinTech Companies established in Europe to influence the way people carry out their financial and business transactions. These startups help financial agencies, companies, and even individuals manage all economic aspects of their business, using new software, applications, business models, and processes.
Understanding the Often-Unsatisfactory Behavior of The Rating Agencies The evidence that emerges from the analyses can lead, more than understandably, to the formation of a negative concept about the agencies, but above all, they weaken those certainties that lead to consider these organizations, essential for the proper functioning of the market. The birth of these
Introduction Rating Agencies have become increasingly important over the decades, slowly but surely penetrating the “market” system and strongly influencing it. Their importance has increased exponentially since the Eighties, as the development of financial markets reinforced the need for investors to have external support such as Ratings for the need to perceive the size of
Introduction Most of the rating agencies’ problems stem from their inclusion in various regulations relating to the financial system. The rating was included in the regulation of the U.S. financial markets, the most developed today, which have long been the reference for all other financial systems. Today, the Basel 2 agreement marks a step forward:
Introduction It is sufficient to consider even their nature as profit organizations to recognize that there are a series of inconsistencies between the Rating Agencies and the role they are called upon to play. Unfortunately, there are numerous “congenital” errors in the nature of the Agencies, which, especially during periods of economic downturn, have been