An Study on Oligopolistic Market Behavior in Credit Rating Industry
Wang Hong · Credit Reference · 2010
At present,there is an oligopoly situation in the credit rating industry in terms of the industry layout,system design,etc.On the one hand,oligopolistic structure has made the rating results identical and resonance,weakening the supervising capability of financial market;on the other hand,it's likely for the rating agencies to lack of proper sense of social responsibility,hence bring about negative competitive behavior.These results may makes credit rating experience a systemic failure in revealing the significant financial risks and ultimately boosting a financial crisis.Therefore,we should encourage the diversification of market risk analysis model so as to reduce over-reliance on credit ratings industry from the regulatory system design.