IV. The Blueprint for the Construction of New
International Credit Rating System
(I) Now
is the best time to reform the existing international rating
system.
First, the evolvement of the crisis and failure of
the bail-out action further raise awareness of reform of the international
community. The reform ideas are brought together and become the mainstream
thoughts and actions. Second, the theoretical and roadmap preparation of the
international rating system reform has been completed. The international leaders
of thought have figured out the essential law from the human practice in
developing credit economy, established the historic position of rating system in
the development stage of credit economic society, found out inherent connection
between rating system and modern economic activities, offering scientific
guidance in determining correct direction of the reform. Third, Rating agencies
from creditor countries have commenced on working with institutions of various
countries to build a new international rating agency, which indicates the major
force of the reform is stepping onto the arena of history.
The new
international credit rating system mode should be made up of three major parts -
international credit rating regulatory organization, international credit rating
agency and international credit rating criteria:
1.
International credit rating regulatory organization
The non-sovereign agency
consists of the rating regulatory bodies of various countries and its
responsibilities include: planning development of the international rating
system, formulating the international rating regulatory rules, guiding various
countries to build their own rating systems, regulating rating agencies'
behaviors and promoting credit rating criteria to upgrade.
2. International credit rating agency
The non-sovereign organization is a
professional credit information service institution consisting of private
institutions from various countries. Its responsibilities include: developing a
unified international rating standard, getting involved in the rating business
in each country, forming the dual-rating mechanism for all debtors for
exercising check and balance and preventing rating risks.
3. International credit rating criteria
The international credit rating
regulatory organization can formulate rating criteria development plan and
encourage rating agencies to carry out and keep improving the criteria. The
international credit rating agency should focus on development and enhancement
of the criteria and ensure its objectivity through
mechanisms.
(II) Four cardinal principles for constructing
the international credit rating system.
Experiences and lessons should be
drawn from the global credit crisis while reforming the international credit
rating system; the development laws of credit economy and credit rating should
be complied with; four cardinal principles should be upheld while taking the
overall interests of the human society into
consideration:
1. Global Principle
Ensuring
from designing of the regime and mechanism, unified criteria are applied in
conducting a rating for every economy across the globe and following up its
risks, to make each rating comparable.
2.
Independent Principle
The following points should be incorporated into the
three components of the international credit rating system: non-national, non-
political, zero interest-related, non-competitive and
impartial.
3. Consistent Principle
Use the
consistent rating criteria to measure the credit risks of different economic
entities to ensure the objectivity of ratings.
4.
International Regulatory Principle
Use the consistent international rating
regulatory criteria to supervise all of the rating behaviors of rating agencies,
international supervision cannot be replaced by national
oversight.
(III) The general objective and
three stages of reforming the international rating
system.
1. The general objective of reforming the
international rating system is:
to build a rating system and mechanism which
can impartially reveal credit risks of each credit-debt relationship across the
globe to lay a solid foundation for reconstructing the international credit
system in order to promote the world economic recovery; to prevent the
reoccurrence of global credit crisis through the powerful warning function of
the rating system.
2. It will probably take
six years in the three stages to realize the objective: In the first stage of
two years, the main task is to initially shape a framework of the new
international rating system with basic operational
conditions.
In the second stage of another two years, the
main task is to test and improve the new system during the operational process
to basically enable it to provide rating information services for the whole
world.
In the third stage of yet another two years, the major task is to
materialize the coordinated development mechanism for the rating system with the
credit system on the macro level; to fully build the new international credit
system with support from the new international rating system and to realize the
economic recovery by using the double systems to push the world’s economy step
out of the crisis.
(IV) It involves the joint
efforts of the international community to reform the international rating
system. Reforming the international rating system is the mission and
responsibility proposed to the human society by the global credit crisis; it is
an epoch-making change to the world economic governance regime. As it concerns
the safe development of the human economic society it cannot be successful
unless the international community pools their efforts
together.
1. Publicity should go first
The
world's media resources should fully report and communicate the international
rating system reform to make the international community understand, support and
participate in the reform in breadth and depth.
2.
Governments should support
Governments should recognize from the crisis that
reforming the international rating system is consistent with their economic and
social management responsibilities, supporting the reform is promoting social
advancement.
3. Creditor countries are a major force
driving the reform.
The creditor countries are more concerned about
the safety of their creditor assets and naturally want to promote the reform
should take lead in reforming and participate in the reform with debtor
countries.
4. Credit rating agencies are the subject to
implement the rating reform
Rating agencies of the whole world should join
hands to undertake the historic mission to achieve the objective of the
reform.
The proposition of reforming the international
rating system to promote the world economic recovery is a practical question; it
is even more a theoretical question. It would be impossible for us to find the
correct approach and method to rescue the crisis if we could not scientifically
explain the process of movement of the credit crisis from the theoretical
perspective and discover its movement law. The realistic significance of
exploring the law is to spark people’s meditations on the objective of and
approach for recovering the world economy, and its historic significance is to
innovate the theory on credit economics, lighting the way forward for the world
economy with the torch of credit thought; it calls for human wisdom, consensus
and action to fulfill this great mission that complies with the historical
needs.
鏈接：改革國際評級體系 推動世界經濟復蘇(中文版)