Procyclical external rating is one of the reasons we observe countercyclical lending standards in corporate lending market.
Fantastic news! We've Found the answer you've been seeking!
Question:
Procyclical external rating is one of the reasons we observe countercyclical lending standards in corporate lending market. Explain how procyclical external rating could impact capital regulation and banks' risk taking and why countercyclical capital requirement can address procyclical external ratings.
Posted Date: