The reformation of activity of ratings agencies at the micro level of the banking system of Ukraine

UDC 336.77.01:330.567.22

Krychyniuk A., Master of Banking, Post Graduate student, Department of Finance and Banking, European University, Ukraine.

The article is devoted to the reformation of activity of ratings agencies at the micro level of the banking system of Ukraine. The estimation of the reliability assessment of credit ratings by the most representative group of four banks of Ukraine according to the assets’ size during 2014 year is given.We found out the reasons of appropriation of the unreliable credit ratings the of chosen banks. We had developed  the variants of eliminating the causes of incorrect assignment of credit ratings.
We compare the credit ratings of the credits’ quality of typical operations with the help of four groups of banks in Ukraine 2014, and we can conclude that the typical representative of the first group is “Privatbank”, the typical representative of the second group is Credit Agricole Bank, the typical representative of the third group is “Pravex bank” and the typical representative of the fourth group is “ProCredit Bank” have the unreliable long-term credit ratings.
We offered the variants of reforming rating agencies Fitch Ratings and Ekspert-reytynh.
We offer to change the model of income that investors pay for assignment of credit rating debt securities. We offer to create the fund in order to finance the rating agencies at the expense of all participants of the financial system. It will minimize the conflicts of interests and  reduce the dependence on customers.
We offer to prohibit any consulting services by rating agencies.
We offer to make the open public exact oficial methodology with the possibility of  the methodological evaluation and improvement by the specialists. We offer to increase the professional level of the specialists who develop and calculate the credit ratings.We offer to analyze and improve the methodology of assessing the creditworthiness of banks and debt securities. We offer to increase competition among the rating agencies. We offer to increase quantity of authorized and nationally recognized rating agencies significantly.
We offer to determine credit ratings the unauthorized and unrecognized ratings agencies.

Keywords: reformation of activity of rating agencies, credit rating, credit rating agencies, bank creditworthiness, conflict of interests, debt obligations, credit risk, a bank.

The reformation of activity of ratings agencies at the micro level of the banking system of Ukraine.

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