Discuss Legal Supervision Of The Credit Rating Agency In China

The credit rating agency is a professional organization which collects andanalyses information to reveal the borrower’s credit risk in simple symbols in order tosolve the problems of information asymmetry between investors and borrowers, byvirtue of economies of scale of information gathering.The article includes four parts as follows:In the first part, the author sets forth the economic and legal meanings of thecredit rating, points out that there are seldom clear regulations about legal nature andorganizational form of the credit rating agencies. In addition, the author introduces thedevelopment status of the credit rating industry and the credit rating agency’sdevelopment obstacles at present in China.In the second place, the supervision of the credit rating agency is analysed andthe regulator focuses on pushing more than supervision during the development ofcredit rating agency. The highest legislative authority’s level of existing regulation isdepartmental rules. From the regulatory body perspective, it was "dual supervisionstructure". There are lack of access requirements of credit rating agency. Also, theaccess provisions of credit rating license are defective.The United States is the origin of credit rating and a number of financial crisisonce occurred there, the regulation system of credit rating agency has been improved.So the author chooses The United States’s supervision system as references in the third chapter. Firstly, it summarizes the development process and supervision changesof American credit rating industry. Then, it analyses the market access, regulator,regulations of interest conflicts, legal responsibility and so on concerning the legalsupervision of American credit rating.In the last part, the author proposes some suggestion of the credit rating agency’slegal supervision which includes introducing the organizational form of specialgeneral partner into credit rating agency and adding the determination procedure ofcontinuous assessment responsible person to improve exist mechanism and so on.