The Regulation And Reformation Of Credit Rating Agencies In International Community And The Legislation In China

Credit rating agencies don't play useful roles of gatekeepers in security markets and neglect the risk of the new financial products. They become targets of public criticism on the problems of this financial crisis. The voices of regulation and supervision on credit rating agencies are becoming louder in international community. Only twenty years on the development of security market in China, it doesn't confront complicated problems such as the conflicts of interest, rating the structured financial products, and etc. Owing to the development on scopes and types in China security market, credit rating agencies play more important roles. This article studies shortcomings of credit rating agencies in China and focus on the developing of credit rating agency law in United States and the reformation about this financial crisis. Then try to draw up a prospective credit rating agency law, not only be able to solve the problems at present but also can take actions in early stage to keep abuses from succeeding. This law should consist of the competent authority, application for registration, the avoidance of conflicts of interest, issuing of credit rating, rating structured financial products, supervisory measures and so on. Hope to do benefits for the regulation , supervision and legislation of credit rating agencies in China.