Self-Regulation, Regulation, Co-Regulation: The Credit Rating Industry Case

摘要

Global Credit Rating Agencies (CRAs) recognised in US legislature as nationally recognised statistical rating organisations (NRSROs) and the European legislature as external credit assessment institutions (ECAIs) are condemned widely in the media, US and EU legislatures and academic circles for their enabling role in the 2008 global financial crisis and to a lesser scale in the earlier respective Enron and Parmalat financial scandals in 2002 and 2003. This article, relying primarily on primary and secondary data available in the public domain, examines critically the use of various regulatory approaches in the United States and the EU as the credit rating industry develops. The study draws on insights from this investigation to ascertain how and why particular factors determine the ultimate choice of regulatory approaches applied in both jurisdictions.