It was not just Tesla’s spectacular entry into the world of bullish cryptocurrencies that attracted the attention of investors to this young asset class. Thousands of crypto currencies are now part of a universe that […]
The Threat of Hacktivists
Cyber risk is event risk, a risk that is growing across all sectors globally. Digitization continues to increase, making software more pervasive throughout an organization, which in turn drives ever more complex software supply chains […]
Calculating Aggregate Risk Weight for Private Banks
Calculation of the Aggregate Risk Weight for CRR Credit Institutions Assigned to the Compensation Scheme of German Private Banks The credit institutions under the Capital Requirements Regulation (CRR credit institutions) are obliged to secure their […]
Extended Lockdown Tensions the Spring for a Higher Jump in Sales at Vectron Systems
The listed Vectron Systems AG assumes that when the corona lockdown ends, strong demand for its products can be expected. This is especially against the background that so far only 30 to 40 percent of […]
Bank Risk Management: Minimum Requirements, Instruments and Strategies for Banks
Oliver Everling and Samuel S. Theodore (publisher): Bank Risk Management: Minimum Requirements, Instruments and Strategies for Banks, Betriebswirtschaftlicher Verlag Th. Gabler, Wiesbaden, http://www.gabler-verlag.de, hardcover, 1st edition 2008, 595 pages, ISBN 978-3-8349-0512-3. Oliver Everling und Samuel […]
Federal Finance Minister’s Speculators
Issuers must be concerned about the damage to the image of the German financial center caused by the inadequate supervision of BaFIn by the Federal Ministry of Finance. As part of the federal administration, the […]
What About S&P’s Irannotice?
S&P Global Inc. international business activities must comport with U.S. international trade restraints, including economic sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Controls. Pursuant to Section 13(r)(3) of the Securities […]
Weighing the Score of ‘bbb+’ for the Swedish Banking Market
The Swedish rating agency commits itself to the general outlook for the banking sector in Sweden. Nordic Credit Rating (NCR) applies a score of ‘bbb+’ for the Swedish banking market and expects an economic upswing […]
Next Generation Financial Services: Digital transformation and new services
Oliver Everling and Robert Lempka (editors): Next Generation Financial Services: Digital Transformation and New Services, Frankfurt am Main 2020, Frankfurt School Verlag, 480 pages, ISBN (print) 978-3-95647-176-6. The digital transformation of the financial industry is […]
Grenke’s Supervisory Board Goes Into Detail
S&P’s Issuer Credit Rating of Grenke AG Rating Type Rating Last Review Date Credit Watch/ Outlook Credit Watch/ Outlook Date Local Currency LT BBB+ 10-Dec-2020 Negative 10-Dec-2020 Local Currency ST A-2 10-Dec-2020 NM 10-Dec-2020 Foreign […]
Religious Affiliation and Politics
Religious ties are a major cause of conflict. For example, while the leadership in the People’s Republic of China has hardly any institutional ties to religions, almost all presidents in the USA are religious. This […]
Equifax Acquires AccountScoreC
Facilitated by the acquisition of AccountScore, Equifax enhances its consumer and commercial product offerings, combining traditional credit bureau information held by Equifax with bank transaction data. Regulatory approval for the acquisition has been received from […]
The Boom of the Chinese Economy, A Key Factor That Upsets Country Risk
The rise of China was certainly the biggest “game changer” of the globalization years. This blog article is a short excerpt from Country Risk – The Bane of Foreign Investors (Springer, 2020) by Norbert Gaillard. […]
How Sustainable is Tesla’s Bitcoin Investment?
Tesla holds and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss. “If we hold digital assets and their values decrease relative to our purchase prices, […]
Rating in the Leasing Business
Hans-Michael Heitmüller, Marijan Nemet and Oliver Everling (Publisher): Rating in the Leasing Business: Significance and Requirements Against the Background of Current Market Developments, Fritz Knapp Verlag GmbH, http://www.knapp-verlag.de/, Frankfurt am Main 2010 , 363 pages, […]
German Communities Demand Good Social Credit Rating When Buying Land
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 […]
Rating Advisory
Ann-Kristin Achleitner and Oliver Everling (Editor): Rating Advisory: With Professional Advice to the Optimal Credit Rating, Dr. Th. Gabler, Wiesbaden 1st edition October 2003, http://www.gabler-verlag.de, 396 pages, hardcover, ISBN 3-409-15010-2. Ann-Kristin Achleitner und Oliver Everling […]
Reach and Scope of Scope Ratings
Google Trends provides access to a largely unfiltered sample of actual search requests made to Google. It’s anonymized, because no one is personally identified. It is also categorized, i.e. determining the topic for a search […]
Collection of Contributions by The Institutional Protection Scheme of EdB
A credit institution is an undertaking which conducts at least one of the banking businesses described in detail in section 1 (1) of the German Banking Act (Kreditwesengesetz) commercially or on a scale which requires […]
Capital Market Rating
Oliver Everling and Jens Schmidt-Bürgel (editors): Capital Market Rating: Perspectives for Corporate Financing, Betriebswirtschaftlicher Verlag Th. Gabler, Wiesbaden 1st edition December 2005, http://www.gabler-verlag.de, hardcover, 318 pages, ISBN 3-409-14242-8. The financing requirements for companies have changed […]
Berechtigungsscheine As An Emerging New Asset Class in Germany
Eligibility certificates (Berechtigungsscheine) are short of becoming a new asset class in Germany. Since January 2021, the Federal Government of the Federal Republic of Germany has been distributing authorization certificates intended for the purchase of […]
German Authority Gives No Mercy to Insider Trading
On January 27, 2021, the Federal Financial Supervisory Authority (BaFin) reported an employee of the securities regulator to the Stuttgart public prosecutor on suspicion of insider trading. The employee had sold structured products with the […]
Financial Psychologist Recommends Inconspicuous Face masks
FFP2 masks are not just a question of operational risk and the operational risk rating of banks. “You are by far our dearest customers” – this or something similar can and could be read in […]
React Flexibly to Requirements With FFP2 Masks
Resilience in crisis situations and flexibility distinguish companies with good ratings. As a result of the COVID-19 pandemic, the core business of many industries continues to be severely affected. However, many medium-sized companies have reacted […]
Top Grade for the Distance University Run by the Rating Expert
Prof. Dr. Ottmar Schneck, Rector of the SRH Fernhochschule: “WOW – we did the triple! Three times in a row we have now received the coveted ‘Most Popular Distance University’ seal from ‘Distance Learning Check’ […]
Green Bubbles and Adverse Selection Based on Sustainability Criteria
Why can ESG scores lead to unsustainable portfolios and “green” bubbles? Louis Larere, Portfolio Manager SRI, Zadig Asset Management, investigates this question. Sustainability is currently the most important trend in asset management and the integration […]
Crime Detection And Prevention Through AI-based Rating
All eyes on MULTIEYE BOS Manager Artec technologies AG (ISIN DE0005209589) strategically develops its business with authorities and organizations with security tasks (BOS). It was not just the storming of the Capitol in the United […]
Sigmar Gabriel Explains to Moody’s the Euro as a Question of Sovereignty and Security
Moody’s Credit Trends 2021 Germany & Austria “As last year has shown, a global pandemic can turn everything upside down,” says Jens Schmidt-Bürgel in an interview with Sigmar Gabriel and starts talking about the greatest […]
Is The Notion of Efficiency Alien to Charity?
there are minimum requirements for recognized non-profit organizations. But can their efficiency and effectiveness also be rated? At effektiv-spenden.org Sebastian Schwiecker, founder and managing director of UES – Gemeinnützige Unternehmergesellschaft (haftungsbeschränkt) für effektives Spenden, tries […]
The Virus Reverses Gender Equality, Not Only An Issue for Impact Investors
The COVID-19 pandemic has profoundly affected the lives of countless people around the world, with women being the hardest hit. Not only because they have a higher risk of COVID-19 infection due to their work […]
China Emerges as a Winner From The Corona Year 2020
China is one of the very few economies that were able to record growth last year, writes DZ BANK in its “Macroeconomics – Economic Perspectives – Economics Weekly“. In the final quarter, the Chinese economy […]
Lack of Financial Education
“You do not talk about money.” This is a common saying in German. “You do not talk about money? But we should! ”- under this motto, Austria’s Financial Market Authority (FMA) is launching a new […]
BaFin Corrects False Warning Against A Real Company And Warns Against Fake Business of a Doppelganger
Following its consumer report of December 3, 2020, the Federal Financial Supervisory Authority (BaFin) now makes it clear on January 18, 2021 that the activity as “asset manager” is not used by HTG Consulting GmbH, […]
Art Market Picking Up
Players’ confidence in the art market is improving, measured live by Artprice.com. The theoretic principles behind this index are as simple as the ones behind the Consumer Sentiment Index in the US. This index constitutes […]
Quality Face Masks Are Among The Top Ten Donation Requests
Donations are resources. Who donates invests. Therefore, every donor is interested in how likely it is that the goals of the donation will be achieved. Assessing and classifying this probability of reaching the aims of […]
How To Run A Credit Reporting Agency In China
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 […]
China’s Administrative Measures for Credit Investigation And Regulations on the Administration of Credit Investigation Industry
On January 11, 2021 the People’s Bank of China announced the “Administrative Measures for Credit Investigation (Draft for Comment)”. This is another heavy new regulation that the credit reporting industry will usher in after the […]
Well on track with around 50% growth
The business development of artec technologies AG (ISIN DE0005209589) in 2020 was positive overall, despite challenges related to the corona pandemic, reports the company from Diepholz / Bremen. After annual sales that increased by around […]
Six UK-Based Credit Rating Agencies Lost Their Registrations
The European Securities and Markets Authority (ESMA), the supervisor of European Union (EU) credit rating agencies (CRAs), has withdrawn the registrations of CRAs based in the United Kingdom (UK). ESMA’s decisions follow the end of […]
Simple Protection Against Investment Fraud
594 victims of financial frauds reported to the Austrian Financial Market Authority (FMA) in 2020 – the highest figure in an upward trend in fraud cases that has been going on for years. The average […]
IOSCO’s Profiling of Investors’ Risk Appetite
The International Organization of Securities Commissions (IOSCO) issued a report with some remarkable findings. Given its mission to assist regulators in responding to the retail market conduct issues caused by stress events such as the […]
Rock Tech Rocking The Market
What made the stock price of Rock Tech Lithium Inc. (Rock Tech) double within just two months? The answer might be here: Apeiron Investment Group, the family office of serial entrepreneur and investor Christian Angermayer […]
Mitigate Operational Risks By Using FFP2 Face Masks
For companies in which employees cannot always keep a safe distance from another, the infection of individual employees and the consequential officially ordered quarantine measures can result in major economic losses. Companies can effectively counteract […]
Vectron’s Recurring Income Strengthens Its Rating
Vectron Systems AG (Vectron), a leading provider of intelligent, digitized cash register systems consisting of hardware, software and cloud services, with a focus on the gastronomy and bakery sectors, has created itself a better position […]
Western Countries Still Lack Systems To Fight Identity Theft
The German Federal Financial Supervisory Authority (BaFin) published an urgent announcement “21.12.2020 | Topic Consumer protection: Warning regarding the website ‘otc-markets.eu’”. Regardless of the warning, the website is still active: BaFin advises that the website […]
Why Art Rating Criteria Need To Be Repaired
The Artprice Report, covering 20 years of Contemporary Art auction history, is a basis for understanding why evidence-based “art rating” is more important and urgent today than ever before. The complexity and global nature of […]
From Alibaba as “Amazon of China” to Amazon as “Alibaba of the USA”
“Innovative market leaders can excel in emerging countries”, writes a clever investor in his “Christmas letter”, who may be quoted here, but wants to remain anonymous, since his letter is only addressed to his “investors […]
How A Credit Rating Agency Should Determine the Weights of ESG Criteria
Moody’s “General Principles for Assessing Environmental, Social and Governance Risks” relate to issues which may have greater downside risk than upside potential for rated issuers. The introduction of these principles is perceived by many issuers […]
German Medium-Sized Bond Issuers Avoid German Government Loans
The financial reports of medium-sized bond issuers in Germany published in 2020 were evaluated and analyzed by URA Research. The URA ratings for 7 bonds were confirmed. According to the report from Munich, the assessment […]
Future Divisional Structure of S&P Global
S&P Global (NYSE: SPGI) and IHS Markit (NYSE: INFO) announced the future divisional structure of the combined company, effective upon completing their pending merger: Divisional Structure S&P Global Ratings will be led by Martina Cheung, […]
Double-edged Strengthening of Banks’ Equity
A few days after the European Central Bank and the German Federal Financial Supervisory Authority (BaFin), the European Systemic Risk Board (ESRB) is now recommending that distributions continue to be restrictive in view of the […]
DEFAMA’s Gemstones Among German Commercial Real Estate
The Berlin-based Deutsche Fachmarkt AG (DEFAMA) invests specifically in small retail properties in small and medium-sized cities, predominantly in northern and eastern Germany. The most important purchase criteria are two or more chain stores with […]
Lloyd Howell
On December 18, 2020, Moody’s Corporation announced that Mr. Lloyd Howell has been elected as a member of the Company’s Board of Directors, effective as of March 15, 2021. Lloyd Howell also has been elected […]
FATF and BaFin Ratings
The European Union (EU) and Financial Action Task Force (FATF) lists countries with deficits in the fight against money laundering, terrorist financing and the financing of proliferation. The lists have far-reaching implications for country ratings […]
CoStar: A Star Rising Higher
The Washington based CoStar Group (WKN: 922134 / ISIN: US22160N1090, Symbol: CSGP), with a staff of over 4,300 worldwide, is a company to watch in the rating industry, since CoStar is a leading provider of […]
Shenzhen – The World Economy of Tomorrow
You can read it in old German travel guides: Shenzhen was once a fishing village. Shenzhen is not mentioned in the five-volume “Der Neue Brockhaus” from 1975. In 1993, the renowned Brockhaus Encyclopedia reported in […]
Moody’s Heatmap Shows Heightened Environmental Credit Risk
Moody’s analysts have revised their environmental classification to reflect evolving environmental, social and governance standards, disclosure frameworks and market conventions among issuers and investors. Environmental risks can arise from regulatory and policy issues, hazards or […]
S&P And Moody’s Are Losing Market Share in the EU
For the first time, the European Securities and Markets Authority ESMA has reported a decline in market shares in Europe for both of the major US rating agencies. The authority thus discloses a remarkable development. […]
Screen Applicants Faster
With the Talent Report™ Select All solution, Equifax (NYSE: EFX) facilitates faster, more-informed hiring decisions for talent acquisition professionals with reliable verifications of employment via The Work Number® database. Talent Report Select All delivers contextual […]
Social Credit Rating
Oliver Everling (editor): Social Credit Rating, Wiesbaden 2020, Springer Gabler Verlag, eBook ISBN 978-3-658-29653-7, Softcover ISBN 978-3-658-29652-0. Social credit ratings are the result of social credit systems. These include online rating or scoring systems which […]
Toward A Reputation State: A Comprehensive View of China’s Social Credit System Project
China’s Social Credit System Project (the “SCSP”) is one of the most misunderstood recent developments in China’s law and policy. In the book “Social Credit Rating“, Xin Dai offers a comprehensive conceptual thesis that explains […]
2020 Becomes the First Year of Digital Currency
From October 8th to 18th, 2020, Luohu District, Shenzhen, China, conducted a digital currency experiment, issuing digital currency red envelopes totaling 10 million RMB (approximately 1.5 million Dollars). From the 8th to the 11th October, […]
57 Registered Credit Rating Agencies in China
Here is the most recent list of 57 registered credit rating agencies in the People’s Republic of China as of October 11, 2020:
Reflections on China’s Credit Reporting Practice
Prof. Wu Jingmei discusses in her contribution to the book “Social Credit Rating” the current situation, logic and development trends of China’s credit reporting system. China’s credit reporting system is composed of financial, commercial and […]
Retail Investors Benefit From the Quant IP Innovation Score
The Munich investment boutique Quant IP is launching a new tranche for private investors for its equity fund Quant IP Global Innovation Leaders Fund. This gives investors the opportunity to invest small sums in the […]
A Study on the Typological Regulation of the Dishonesty Punishment – also on the Rule Design of the Social Credit Law
The punishment of dishonesty is an important content of the credit rule of law, writes Wang Wei in the book “Social Credit Rating“. “The punishment of dishonesty is not a precise legal concept,” he says, […]
No Movement! Data or Life!
For many people it has become a reality: life is completely monitored. Hence it is no longer a question of whether life is, can or should be observed by strangers. It’s all about how, according […]
Groundbreaking Multifunctional Monitoring and Surveillance System for Compliance with Corona Hygiene Protection Measures
Artec technologies AG (ISIN DE0005209589) is now offering a multifunctional monitoring and monitoring system for compliance with corona hygiene protection measures called MULTIEYE OverCrowding Watch App. The software is based on existing artec products that […]
Risk Culture as a Means of Mitigating Conduct Risk
Thomas Kaiser and Tatjana Schulz write in their contribution to the book “Social Credit Rating” about the similarities with and differences to the China Social Credit System: Banks around the world have been exposed to […]
Determinants of Consumer Credit Default in Romania: A Comparison of Machine Learning Algorithms
Prof. Dr. Monica Dudian and Ana-Maria Sandica investigate the separation power of several machine learning techniques and compared them with the benchmark logistic regression using real data from 17520 private individuals of a Romanian commercial […]
Credit Rating Information Failed to Deliver
AvP Deutschland GmbH is an example of a rating dilemma: The company is too small to belong to the group of companies closely monitored by recognized rating agencies automatically, and too large to be ignored […]
SME Rating Dilemma
Small and medium-sized companies have difficulties communicating their creditworthiness credibly. Recognized credit rating agencies concentrate their services on companies that go through a committee-based rating process. The legal framework in Europe offers no alternative to […]
Separation of Product Comparison, Brokerage and Insurance Services
Any rating company who does not limit itselve to the comparison of financial services, but also insures the customer against risks, must obtain approval for this. There is no free market for financial services in […]
Legal Characteristics of Forest Ownership
At the federal and state level, there are laws on forests in Germany that must be taken into account with every rating of forest investments. The federal states regulate rights and obligations differently. In the […]