Objectives

​

CreditUtility is a small, single-purpose “incubator” for pragmatic risk transfer regulation proposals and establishing a credit network monitoring capability. As such CreditUtility generates both targeted research and independent input into official policy making discussions. It also acts as a discussion catalyst and bridge between academic commentators, industry professionals and policy makers on how such adjustments might be introduced.

 

CreditUtility’s ultimate objective is to simplify and strengthen the credit network, specifically the collateralised credit risk transfer market within this network. That is, CreditUtility sees the risk transfer market as an integral component within an efficient financial system and functional regulation as a means of fostering that financial system’s health.

 

CreditUtility’s focus rests primarily on the non-regulated and unmonitored credit transfer activities that generate leverage and interconnectedness within the financial system. These include non-regulated credit intermediation by shadow banks as well as regulated banks’ balance sheet management transactions (e.g. securitisation and “repos”). For the avoidance of doubt, single name and index linked credit default swap (CDS) transactions are considered as separate, non-collateralised activities and beyond CreditUtility’s development scope. This reflects, in part, the already advanced state of regulatory initiatives for the CDS market. Nonetheless, CDSs are important components within the broader credit network and CreditUtility seeks to integrate the emerging CDS market data flows with its own. 

 

CreditUtility maintains an open mind as to whether such risk transfers should occur within a regulated or “shadow” banking context. CreditUtility's main concern is that these transactions are transparent, support the real economy, and that their monitoring and regulations respects participants' legitimate commercial sensitivities.

 

With regard to existing regulatory frameworks and official initiatives to ensure a level playing field, CreditUtility fully supports these while offering further perspectives and insights that may prove useful to policy formulation. CreditUtility also harbours no ambitions for on-going policy or regulatory lobbying work. It simply seeks the introduction of appropriate monitoring and transparency infrastructure for the risk transfer market.

 

Organisation

 

As of August 2021, CreditUtility remains unincorporated. It is unlikely that this will change. As a single-purpose entity, we will maintain the availability of this website as long as this remains relevant. (It was previously listed as www.creditutility.eu ). Nonetheless, we do expect CreditUtility to be disbanded eventually.

 

To maintain its neutrality and to avoid any conflict of interest, CreditUtility is both self-funded and operates on a not-for-profit basis.

 

 

Operating policies

 

Collaborations and third-party funding

CreditUtility may collaborate with academic institutions, non-affiliated think tanks and, in certain cases, commercial companies. CreditUtility will only accept remuneration that is compatible with its non-aligned principles. All such agreements will be disclosed on CreditUtility’s website and fully acknowledged.

 

Disclosures

There are no agreements or potential conflicts of interest to disclose at this time.

 

Website content, confidentiality and use

CreditUtility's website is offered as a public service. Differing views and arguments are welcome and their publication does not represent endorsement by CreditUtility.

 

Publishing policies

Published items will not be corrected retro-actively, save for obvious grammatical or typographical errors.

 

All rights remain reserved.