Published on 01/10/2024
Share this Article:
By The Little Hut
  • Dr Daniel Cash calls for reforms to create a more equitable global financial architecture
  • He co-authored the report with fellow credit rating expert, Maha Khan
  • The work is in collaboration with United Nations University Centre for Policy Research.

Dr Daniel Cash, a leading expert on credit rating agencies and their impact on the global economy, has co-authored a report in collaboration with the United Nations University Centre for Policy Research (UNU-CPR) that urges the overhaul of global credit rating agencies (CRAs) to foster a more equitable global financial system.

The report, Rating the Globe: Reforming Credit Rating Agencies for an Equitable Financial Architecture, was co-authored by Dr Cash and Maha Khan.

It critically examines the dominant role of CRAs in shaping global finance. It highlights how the current structure of CRAs perpetuates inequalities, particularly for developing nations, by dictating access to financial markets based on narrow, often biased, credit assessments.

The report outlines recommendations to reform CRAs, with a focus on increased transparency, greater regulatory oversight and more inclusive credit rating methodologies that reflect the unique contexts of emerging economies.

Dr Cash, associate professor in Law at Aston University, said:

“This is not just a financial issue but a moral one.

“Without meaningful reform, the system will continue to exacerbate the financial imbalances that keep developing countries in a perpetual state of disadvantage.

“The system, as it stands, marginalises many countries, depriving them of fair access to financial resources and stifling their development prospects.

“Global financial stability hinges on a diverse, equitable approach to credit assessment. Among our proposals are enhanced stakeholder involvement from underrepresented regions, a re-evaluation of rating metrics that consider social and environmental factors and the establishment of alternative, regional credit agencies to balance the power of the major players such as Moody’s, Fitch and S&P Global Ratings.

In response to the report, the UNU-CPR is launching a series of high-level events to discuss the feasibility of implementing these recommendations, with Dr Cash set to take a leading role in facilitating discussions with international financial institutions and national governments.

The full report is available for download through UNU-CPR and can be accessed here.

Notes to Editors

About Aston University

For over a century, Aston University’s enduring purpose has been to make our world a better place through education, research and innovation, by enabling our students to succeed in work and life, and by supporting our communities to thrive economically, socially and culturally.

Aston University’s history has been intertwined with the history of Birmingham, a remarkable city that once was the heartland of the Industrial Revolution and the manufacturing powerhouse of the world.

Born out of the First Industrial Revolution, Aston University has a proud and distinct heritage dating back to our formation as the School of Metallurgy in 1875, the first UK College of Technology in 1951, gaining university status by Royal Charter in 1966, and becoming The Guardian University of the Year in 2020.

Building on our outstanding past, we are now defining our place and role in the Fourth Industrial Revolution (and beyond) within a rapidly changing world.

For media inquiries in relation to this release, contact Sam Cook, Press and Communications Manager, on (+44) 7446 910063 or email: s.cook2@aston.ac.uk

Be first to get the latest news, research and expert comment from Aston
by 
following us on X

Need an expert for your story? Browse our experts directory

 

Members of the press and media who have queries should contact:

Sam Cook,
Press and Communications Manager

 

Nicola Jones,
Press and Communications Manager

 

Helen Tunnicliffe,
Press and Communications Manager

 

Alternatively, email

 

Or follow us on X:
@AstonPress on X