Study On The Supervison Mode Of Security Credit Rating

With the globalization of capital market, credit rating plays an irreplaceable role in financial field and it is of great strategic significance for safeguarding national financial sovereignty. Regrettably, credit rating agencies accelerated the financial market turmoil rather than performing the duties as"gatekeepers", which has been explicit in the 2008 economic crisis and 2010 European sovereign debt crisis. Consequently, we need to rethink the supervision on credit rating. The key point to reinforce the rating supervision consists in establishing the supervision mode.Supervision mode is a comprehensive concept which refers to systems about supervision agencies, supervision philosophy, and supervision boundary as well as supervision degree. Security rating supervision mode plays an important role in establishing concrete rating supervision system. After inspecting the rating supervision modes of the U.S., EU, Japan, Basel Committee, International Organization of Securities Commission, the author believes that during the process of establishing rating supervision mode, it is needed to take account of such factors as nature of rating agencies, the relationship between rating industry and capital market development, existed financial supervision cultures and philosophies, strengthening discourse power of rating agencies etc.At present the rating industry in China is underdeveloped and is in a critical period of credit rating development and reform, with the gradual opening-up of domestic capital market, China's credit ratings will inevitably face more and more fierce international competition. Under such circumstance, it is not only necessary to enhance the development of financial market by tightening supervision upon China's credit rating agencies, but also it is important to create a favorable environment for the development of domestic credit rating agencies through strict supervision, which will contribute to promoting their international competitiveness and strengthening discourse power. Consequently, it is essential to establish credit rating regulation system which conforms with national conditions. Undoubtedly, it is hard job which firstly needs to consider many elements such as the degree of maturity of domestic capital market, developing situation of investors, and regulatory cultures etc, and then needs to find out proper regulator, determine the supervision pattern and method as well as regulatory scope. This article includes five chapters following such thinking order.The first chapter introduces basic situations of supervision modes. Through carding and analyzing present supervision modes, the author comes to the conclusion that the existing supervision modes are lopsided and narrowly defined.The second chapter discusses the development and supervision of credit rating in China, then summarizes some existed problems of supervision regulations, pointing out the source of problems lies in disorder of supervision modes.In the third chapter, the author studies the credit rating supervision modes in other countries and organizations. Due to lack of the definition of supervision modes in other countries, the author adopts the measure of essential study in order to provide proved fundamental for reference.The fourth chapter mainly discusses some essential factors which should be taken into consideration when establishing the supervision modes. The author successively analyzes the influencing factors such as nature of rating agencies, development of capital market, culture of rating supervision, strengthening of domestic rating competiveness as well as the brand new demands upon rating supervision from financial crisis and sovereign debt crisis etc.In the last chapter, based on discussions and analyses above, the author put forward some proposals concerning the supervision mode which China should choose, and concrete improvement measures under this chosen mode.