ANALYSIS ON REGULATION OF CREDIT RATING AGENCY IN RUSSIA AND POLICY RECOMMENDATIONS
( Pp. 41-49)
More about authors
Hwang Jeeyoung
aspirant kafedry prikladnoy institucionalnoy ekonomiki
Lomonosov Moscow State University
Lomonosov Moscow State University
Abstract:
Background: There is some information asymmetry between financial market participants. Credit rating agencies (CRAs) are meant to correct it. However, they have inherent problems in their own structure and operations, such as conflict of interests, lack of transparency and accountability of credit rating services, etc. Russia has just recently introduced its own regulation of CRAs and hence local and foreign CRAs in Russia should prepare for documents to comply with regulatory and legal requirements of the Central Bank. Now, it will be appropriate to analyze these new regulations. Materials and methods: Federal law of 13 July 2015 №222-FZ on the Activities of Credit Rating Agencies in the Russian Federation is analyzed, based on the economic theory. Results: This regulation adequately fulfills its own objectives but still have some deficiencies. So the Russian regulators need to take into account effective systems of legal accountability in credit rating agencies to protect the rights of market participants. Moreover, it is important to organize Association of CRAs, as being a third party, to exercise monitoring over the credit rating performance. Conclusion: Therefore, we can draw a conclusion that regulation authority should consider administrative monetary penalty systems. Also, activities of CRAs in Russia need to be regularly monitored by Central Bank and self-regulated organization, i.e. Association of CRAs in Russia.
How to Cite:
Hwang J.., (2016), ANALYSIS ON REGULATION OF CREDIT RATING AGENCY IN RUSSIA AND POLICY RECOMMENDATIONS. Business in Law, 5 => 41-49.
Reference list:
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Matovnikov M. Kak upolnomochivat reytingovye agentstva dlya otsenki kreditosposobnosti banokv // Den gi i kredit 2008. № 12.
Moiseev S. Regulirovanie deyatel nosti reytingovykh agentstv na natsional nom rynke // Voprosy ekonomiki. 2009. № 2.
Samiev P.A. Reytingovye agentstva v Rossii // EKSPERT RA 2006. (19, iyulya, 2006 goda) URL: http://www.raexpert.ru/editions/article12/
Federal nyy zakon O deyatel nosti kreditnykh reytingovykh agentstv v Rossiyskoy Federatsii, o vnesenii izmeneniya v stat yu 76.1 Federal nogo zakona O tsentral nom banke Rossiyskoy Federatsii (Banke Rossii) i priznanii utrativshimi silu otdel nykh polozheniy zakonodatel nykh aktov Rossiyskoy Federatsii ot 13.07.2015 N 222-FZ.
KHeynsvort R. Regulirovanie deyatel nosti reytingovykh agentstv // Den gi i kredit. 2009. № 7.
KHotinskaya G. Mesto i rol reytingovykh uslug v sovremennoy khozyaystvennoy srede // Sovremennye problemy i servisa i turizma. 2007. № 1.
SHishkov A. Prezentatsiya Reytingi ot mezhdunarodnykh reytingovykh agentstv: otsenka ob ektivnosti . Materialy Kruglogo stola Regulirovanie deyatel nosti reytingovykh agentstv: primenenie reytingov, metodiki otsenki, sopostavimost shkal . 17 aprelya 2014 g.
A New Regulatory Framework for Credit Rating Agencies // Global Credit Review. 2011. Vol.1. P.15-31. Risk Management Institue (RMI). National University of Singapore. URL: http://rmi.nus.edu.sg/gcr/ files/02 20GCR 20vol 201.pdf
Partnoy F. How and Why Credit Rating Agencies Are Not Like Other Gatekeepers // San Diego Legal Studies Paper. № 07-46. May 2006. URL: http://ssrn.com/abstract 900257
Study on the State of the Credit Rating Market. Final Report. MARKT/2014/257/F4/ST/OP. European Commission. 2016. URL: http://ec.europa.eu/finance/rating-agencies/docs/160101-study en.pdf
Susan K. Schroeder Public Credit Rating Agencies: Increasing Capital Investment and Lending Stability in Volatile Markets. New York:Palgrave Macmillan US, 2015.
Keywords:
credit rating agencies, a conflict of interest, regulation, the regulator.
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