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Credit Rating Effects of the Global Minimum Tax

Tax

G7 Finance Ministers’ communiqué will most likely not bring any credit rating improvements for multinational corporations. “We strongly support the efforts underway through the G20/OECD Inclusive Framework”, says the Finance Ministers and Central Bank Governors of the G7’s Communiqué, “to address the tax challenges arising from globalisation and the digitalisation of the economy and to…

Rating Technology

Read, Technology

Rating technology is the collection of techniques, skills, methods, and processes used in the production of rating services or in the accomplishment of rating objectives. Rating technology comprises the knowledge of techniques, processes, and the like, and can be embedded in computers to allow for operation without detailed knowledge of their workings, for example in…

German Communities Demand Good Social Credit Rating When Buying Land

Read, Scores

The allocation guideline for the allocation of community-owned building plots in the development plan area “South of Adolf-Reichwein-Strasse” in the Rodenbach community provides an example of applied social credit rating in Germany. As part of the reallocation process, the municipality of Rodenbach acquires areas to implement the objectives pursued with the land-use planning. The municipal…

How To Run A Credit Reporting Agency In China

Agencies, Authorities, Bureaus, Compliances, Governance, Read, Registrations, Regulations

The People’s Bank of China issued a Draft for comments on “Measures for the Administration of Credit Investigation Services“. It is intended to regulate the credit investigation business and related activities, and promote the healthy development of the credit investigation industry. This is formulated in accordance with the “Civil Code of the People’s Republic of…

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Professional and Personal Requirements for Persons Appointed as Management Board Members

Certifications, Compliances, Read, Registrations, Regulations

The Federal Financial Supervisory Authority of Germany (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) provided a Guidance Notice on management board members pursuant to the German Banking Act (Kreditwesengesetz – KWG), the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG) and the German Capital Investment Code (Kapitalanlagegesetzbuch – KAGB). The following introduces the approach how to check…

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Credit Rating Criteria for Leasing Companies

Agencies, Criteria, Read

Under the umbrella of the Auditing Association of German Banks, GBB-Rating Gesellschaft für Bonitätsbeurteil mbH (hereinafter referred to as “GBB-Rating”) provides long-term credit ratings of leasing companies. GBB-Rating has published criteria for the rating of leasing companies in German on its website. Unfortunately there was (August 23, 2020) no English translation. In the following are summarized some of their…

Leasing Company Rating

Agencies, Associations, Methodologies, Read, Systems

Leasing companies have been analyzed by leading US credit rating agencies for decades. In addition to these rating agencies, there are other rating approaches for leasing companies. Three of these are briefly presented here. The first relates to a joint initiative by Landesbanken and other credit institutions to operate bank-internal system for rating leasing companies.…

Recognized Credit Rating Agencies

Agencies, Certifications, Read, Registrations, Regulations

There are almost 200 countries in the world. Many countries do not have specific regulations on rating activities, but most industrialized countries do have laws on Credit Rating Agencies (CRAs). Credit Rating Agencies are required to get registered, licensed, recognized or certified. Until the Credit Rating Agency Reform Act of 2006 was introduced in the…

Australian Securities and Investments Commission Licensed Credit Rating Agencies

Agencies, Certifications, Read, Registrations, Regulations

The Australian Securities and Investments Commission (ASIC) published an information sheet (INFO 143) for credit rating agencies providing services in Australia. It gives guidance on the meaning of certain conditions that apply to these credit rating agencies under their Australian financial services (AFS) licence. It covers the scope and purpose of Australian Securities and Investments…

Patent Rating

Definitions, Methodologies, Read, Systems

Innovation rating and patent rating have different tasks, but are interrelated. An innovation rating is used to assess a company’s ability to compete with other (innovative) companies through innovation. The patent rating, on the other hand, is a future-oriented judgment on the relative intrinsic value of a patent and requires a system of classification. The…

Equity Rating Repair

Criteria, Definitions, Methodologies, Models, Performance, Read, Regulations, Repairs, Scales, Symbols, Systems

Stock instruments issued or to be issued and / or traded on certain stock markets may be the subject of ratings. Stock ratings reflect the risks associated with the creditworthiness of the issuer and the stock market liquidity of an instrument. However, they do not address the risk of loss associated with price changes and…

KYC Risk Rating

Compliances, Methodologies, Procedures, Read, Regulations, Systems

Under strict Anti-Money Laundering (AML) regulations put in place by national governments, the European Union (EU), the Financial Action Task Force (FATF), and the United Nations (UN), all financial institutions and many types of companies are required to closely monitor their clients’ accounts and report any suspicious activity. These legal requirements often take the form…

KYC Risk Rating

Compliances, Methodologies, Procedures, Regulations, Systems

Under strict Anti-Money Laundering (AML) regulations put in place by national governments, the European Union (EU), the Financial Action Task Force (FATF), and the United Nations (UN), all financial institutions and many types of companies are required to closely monitor their clients’ accounts and report any suspicious activity. These legal requirements often take the form…