YEREVAN, December 24. /ARKA/. Banks’ reliance on credit rating agencies is to be limited under moves by regulators to make lending more secure, Citywire.co.uk reports referring to the Financial Times.

The Basel Committee on Banking Supervision said it wants banks to increase the degree to which they make their own assessments, and rely less on external credit ratings agencies.

The move has been seen as a way to curb the influence of the rating agencies, which apparently failed to spot the risks in bank lending practices in the run up to the credit crunch.

‘The era of credit ratings being used in bank regulation could be slowly coming to an end globally. This is quite revolutionary,’ Gerald Podobnik, head of capital solutions at Deutsche Bank, told the paper. –0--