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Multiple credit ratings and liquidity creation

Kladakis, George; Chen, Lei; Bellos, Sotirios K.


Lei Chen

Sotirios K. Bellos


We examine the relationship between multiple credit rating purchases by banks and liquidity creation using a diverse sample of 486 banks from 71 countries. We show that liquidity creation is negatively associated with the number of ratings purchased by the bank, and that capital can positively moderate this relationship, allowing banks that obtain more ratings to create more liquidity.


Kladakis, G., Chen, L., & Bellos, S. K. (2022). Multiple credit ratings and liquidity creation. Finance Research Letters, 46(A), Article 102313.

Journal Article Type Article
Acceptance Date Jul 12, 2021
Online Publication Date Jul 14, 2021
Publication Date 2022-05
Deposit Date Nov 2, 2021
Journal Finance Research Letters
Print ISSN 1544-6123
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 46
Issue A
Article Number 102313
Keywords Banks, Rating agencies, Multiple credit ratings, Liquidity creation
Public URL