Mario Draghi, chairman of the Financial Stability Board, called on policymakers to remove references to credit ratings from regulations, saying the board endorses reduced dependence on credit rating agencies. The FSB also said market participants, including banks and institutional investors, should assess risks themselves rather than relying on rating agencies. "The goal of the principles is to reduce the mechanical reliance on ratings", which "can amplify pro-cyclicality and cause systemic disruption", Draghi said.

Related Summaries