Research On Credit Rating Agency Supervision

Along with the deep development of China’s economic system,China’s economy has also developed vigorously.Although in recent years,we have slowed down the pace of economic development,and the goal of economic development has been to pursue higher quality.However,many problems in the financial field have not been resolved,the financial market has shown a certain degree of chaos and complexity,and the situation of information asymmetry between market entities is becoming more and more serious.How can the financial market order be more effectively geographically smoothed? Credit rating agencies came into being and played a role in solving the problem of information asymmetry.Credit rating agencies focus on solving the problem of information asymmetry between investors and borrowers.It should be an intermediary agency in the credit management industry,and it also needs to operate independently.Therefore,it emphasizes independence,authenticity,and robustness,and regards these as the guiding principles of behavior that it should follow.The working procedures of the credit rating agency are: firstly analyze the information provided by the rating object,in order to ensure the authenticity,they also collect the relevant information of the rating object and analyze it;secondly,based on the analysis,reveal the borrower’s credit rating and indicate the credit risk,Often expressed by simple symbols.The outbreak of the global financial crisis in 2007,China’s credit rating agencies have repeatedly encountered problems such as untrue ratings and empty rating procedures.Investors’ interests have been greatly damaged,which seriously disrupted the order of the financial market.So the supervision of credit rating agencies was brought into people’s vision.In order to ensure the legitimacy and effectiveness of supervision,legal regulations are necessary.The author believes that this is conducive to the development of China’s current credit rating industry on a stable road and can effectively play a role in restricting the credit rating behavior on economic entities and personal credit.Make it a gatekeeper for financial markets.China’s credit rating market started relatively late.At present,the operation of credit rating agencies has government regulations and industry self-regulation.As far as government regulation is concerned,there are many problems.The main points are as follows: The relevant legal systems are not only few and low-ranking.Combining the existing legal norms,it is found that the department regulations are the highest.Because credit ratings involve engaging in various market entities,therefore Supervising entities shall supervise supervision separately according to the scope of business;credit rating agencies have no access mechanism;and there are no provisions on the basis,standards,scope,and methods for liability for damage caused by false ratings and improper ratings.Of course,the improvement of credit rating agency supervision does not happen overnight.It needs to be synchronized with the development of the credit rating market.It is also necessary to draw on the regulatory experience of developed countries in the West,especially the United States.The United States is the origin of credit ratings,and the most authoritative professional credit rating agencies recognized internationally are almost all American.Due to the subprime mortgage crisis,the U.S.government has experienced a change in the management of credit rating agencies from self-regulation and regulation to the introduction of multiple regulatory bills.The European Union and Japan have also affected the credit rating agencies’ qualifications and legal status in response to the financial crisis.And credit rating procedures.The basic content of this article: First,to explain the general problems of China’s credit rating agencies;second,to analyze the current status of China’s credit rating agencies supervision;third,to focus on the experience of the United States,the European Union and other countries and regions on the management of credit rating agencies The fourth is to make a comparative analysis of the above-mentioned external enlightenment and the actual situation in China,so as to arrive at the perfect recommendations of China’s credit rating agencies in terms of the status of regulatory legislation,the subject of supervision and the supervision mechanism.