Research On Legal Regulation Of Credit Rating Agencies In Post Financial Crisis Times

U.S. subprime mortgage crisis began hitting the world's major financial markets such as the United States, the European Union and Japan in August 2007. It gradually spread and evolved into a global credit crisis. In this financial crisis, the credit rating agencies which were once regarded as the guardian angels of the interests of investors and the gatekeepers of the capital market played an important role in the collapse of the capital market. It was generally agreed that lacking of the legal regulation of credit rating system lead to this situation. After the Crisis, the United States, European Union and other countries strengthened the regulation of credit rating agencies which was challenged in the crisis by using legislative measures.Current credit rating industry in China is not yet mature, and there are plenty of problems in the legal regulation of credit rating agencies. With the continuous development and improvement of China's financial market, market players and financial regulators increasingly rely on investment decisions and regulatory standards made by credit rating agencies.So we draw the lessons from this financial crisis that it is absolutely necessary to establish and improve our legal regulation of credit rating agencies. Firstly, in the concept of development, on one hand, we should attach importance to both of the development and the supervision of credit rating agencies and strengthen the development of credit rating agencies themselves, on the other hand,we should further avoid conflicts of interests and develop a good kind of credit rating culture.Secondly, the study of the legislation of credit rating agencies should be gradually strengthened. Including formulating unified credit rating law,amending the existing credit rating statutes, issuing new regulations of the opening and using of credit databases and strengthening regulations of legal responsibility. Thirdly, improving standard management of the credit rating agencies is also important.To improve market access and exit system, to establish network monitoring system and dynamic tracking mechanisms and to build the self-managing systems in credit rating industry are necessary. Therefore, China should learn from Western countries, on the basis of our specific situation and financial practices, focus on the shortage of our current laws, and further improve the legal regulation on credit rating agencies by supplementing related concepts and regulations and carrying out corresponding system and measures.