CMB: Stronger credit ratings system required

Ma Weihua, president of China Merchants Bank, has called for new rules to strengthen control of China’s rating and credit guarantee systems, Reuters reported. "Through uniform standard and supervision, rating and credit guarantee firms that cannot meet regulatory requirement should be forced to exit the business," said Ma, who called the existing situation "disorderly and messy." China had about 100 credit rating agencies in 2007 and, according to Ma, has 3,366 credit guarantee companies with registered capital of less than US$4.39 million. Ma called on Beijing to establish a committee to regulate the rating industry. At least five government agencies currently have supervisory powers over rating and credit guarantee businesses.