Emergence of Rating Agencies: Implications for Establishing a Regional Rating Agency in Asia

The present analysis sheds light on the setting up a regional rating agency in Asia in the wake of recent financial crisis. We investigate the policy facing a financial regulator while evaluating whether or not to admit new entrant into the credit rating market. In an incomplete contracting framework, we show that an impartial financial regulatory body (represented by a benevolent supranational organization) can facilitate credit ratings of high quality by allowing for the entry of new rating agencies on a non-single basis than it does for a mere single entry. This finding is caused by increased competition among the rating agencies, which induces higher quality of rating services even should rating agencies still exert below their maximum level of efforts.credit rating agencies; moral hazard; incomplete contracting

3-Chloro-N′-(3,5-dibromo-2-hy­droxy­benzyl­idene)benzohydrazide methanol monosolvate

The title Schiff base compound, C14H9Br2ClN2O2·CH3OH, features an intra­molecular O—H⋯N hydrogen bond, which contributes to the planarity of the mol­ecule: the dihedral angle between the two benzene rings is 4.6 (2)°. In the crystal, pairs of adjacent mol­ecules are linked through inter­molecular N—H⋯O and O—H⋯O hydrogen bonds, forming dimers. The methanol solvent mol­ecule is linked by inter­molecular O—H⋯O hydrogen bonds