EU proposes tougher credit rules

The European Commission has announced proposals for stricter regulation for credit rating agencies (CRAs).

The proposal comes as CRAs are perceived to have been a major cause of the credit crunch, the BBC reports.

The new regulations are an attempt to ensure that CRAs act more openly, and that ratings are not affected by conflicts of interest.

The regulations may prevent bad credit going unnoticed in future, in turn helping to stop another global credit crisis from happening.

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