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

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.