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EU banks to discuss rating agencies dominance-FT
LONDON May 15 (Reuters) - Around 20 of Europe's biggest banks are to discuss plans to challenge the dominance of the top three credit ratings agencies, the Financial Times reported.
The plans will be discussed in Frankfurt on Wednesday at a meeting of the CFO Network, a loose federation of finance directors from Europe's top banks, according to the article published on the FT's website on Tuesday.
Some of the banks want to change the culture of information disclosure of the "Big Three" credit rating agencies, Standard & Poor's, Moody's and Fitch.
"They get privileged information. In future, maybe they should only get a standard pack, putting everyone on an equal footing," said one person familiar with the plan, cited by the FT.
Also under discussion at the CFO meeting will be the topic of bank liquidity, amid concerns the ensuing euro zone crisis could freeze up interbank lending, the FT said.
The "Big Three" credit rating agencies have been criticised by policymakers for helping to sow the seeds of the financial crisis.
The EU's regulator, the European Securities and Markets Authority (ESMA), in March called for the "Big Three" to improve their explanations of downgrades.
The EU is now approving its third set of rules in as many years for rating agencies. The latest draft law includes a requirement for users to switch to another agency after a certain number of years to boost competition.
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