Credit Rating Agencies (Regulation)
According to the EU Commission, all credit rating agencies in the EU should be registered and should fulfil certain requirements on their independence and transparency. Banks and other regulated financial service providers should be allowed to use ratings from such agencies only, when calculated the own funds they must retain.
The Commission is going too far. The Regulation should apply only to credit rating agencies whose ratings are to be used in the calculation by financial service providers of necessary own funds. Ratings of credit rating agency from outside the EU should also be useable to this end, when these agencies are subject to regulatory standards which are similar to those in the EU.