Think-tanks such as the World Pensions Council have also argued that European legislators have pushed somewhat dogmatically for the adoption of the Basel II recommendations, adopted in 2005, transposed in European Union law through the Capital Requirements Directive (CRD), effective since 2008. In essence, they forced European banks, and, more importantly, the European Central Bank itself e.g. when gauging the solvency of financial institutions, to rely more than ever on standardised assessments of credit risk marketed by two non-European private agencies: Moody's and S&P. COUNT 4
QSN1 Which agencies have became the authority on assessing the risk of financial institutions? ANS1 Moody's and S&P QSN2 When was Basel II adopted? ANS2 2005 QSN3 What said that agencies had to start using Moody's and S&P to assess financial institutions? ANS3 the Basel II recommendations QSN4 Since when have the Basel II recommendations been in effect? ANS4 2008