Unraveling Bank Regulatory Developments Affecting Lending: Leveraged Lending Guidance, Basel III Capital and Liquidity Coverage Ratio Rule and More

Navigating Changes in the Long-Term Lending, Leveraged Lending, Securities Finance and Repo Markets

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, September 10, 2015

Recorded event now available

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Program Materials

This CLE webinar will discuss key bank regulatory actions taken designed to address bank capital, leverage and liquidity, particularly the Leveraged Lending Guidance, Capital Requirements, Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR). The program will focus on the impact of these regulatory changes on the lending and financial markets.

Description

The Leveraged Lending Guidance is a set of rules for underwriting standards for leveraged loans. Banks have avoided deals that don’t meet Federal bank regulators’ guidelines, which has negatively impacted borrowing costs. Other unregulated financial services entities have stepped into this market. 

In Feb. 2015, the bank regulators conducted a teleconference to answer questions about the Guidance. This supplemented the agencies’ Nov. 2014 release of 26 frequently asked questions to assist lenders in reducing the number of noncompliant loans. 

The LCR requires banks to hold enough high quality liquid assets to survive a 30-day stress scenario. The NSFR may have a chilling effect on the long-term lending market, such as the project finance market, and will impact loan structures and terms. Other areas impacted by the NSFR are the repo market and equity transactions.

Listen as our authoritative panel of finance practitioners analyzes key bank regulatory actions to address bank capital, leverage and liquidity, particularly the Leveraged Lending Guidelines, Capital Requirements, LCR and NSFR. The panel will discuss how these regulatory changes have impacted loan structures, loan terms and other lending activities.

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Outline

  1. Key regulatory changes impacting lending/financial markets
    1. Leveraged Lending Guidelines
    2. Capital Requirements
    3. Liquidity Coverage Ratio
    4. Net Stable Funding Ratio
  2. Impact of the rules on the lending/financial markets
    1. Effect on long-term lending market
    2. Effect on leveraged lending market
    3. Impact on the securities finance market
    4. Alternative Lenders and Shadow Banking
    5. Bank Compensation

Benefits

The panel will review these and other key issues:

  • What red flags or loan characteristics may cause bank examiners to scrutinize a loan’s compliance with the Leverage Lending Guidelines?
  • What further guidance have federal banking regulators provided to assist lenders in interpreting the Leverage Lending Guidelines?
  • How will the NSFR affect bank lending in the long-term lending market? 

Faculty

Lisa M. Ledbetter
Lisa M. Ledbetter
Partner
Jones Day

Ms. Ledbetter advises U.S. and non-U.S. banks and financial institutions on strategic, regulatory, enforcement, and...  |  Read More

Ralph F. (Chip) MacDonald, III
Ralph F. (Chip) MacDonald, III
Partner
Jones Day

Mr. MacDonald's practice emphasizes securities, mergers and acquisitions, corporate governance, financial...  |  Read More

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