Institutional lender meaning

In this issue: Key developments and horizon scanning Leasing property Commercial real estate finance Statutory compliance Residential property Property management Property development Transferring property Property in Wales Property taxes Additional property updates this week Daily and weekly news alerts New and updated content Trackers Key developments and horizon scanning BPF commentary on 2024 Autumn Budget The British Property Federation (BPF) has released a Spotlight Series blog featuring insights from Rachel Kelly, the BPF’s Assistant Director of Policy (Finance), on what the 2024 Autumn Budget means for the property industry. Kelly set out the Federation’s proposals to government ahead of 30 October 2024: modernising business rates, backing energy efficiency retrofits, and amending tax rules to unlock institutional investment in new housing. She underlined that, given the right fiscal and regulatory framework, the Build-to-Rent (BtR) market could expand its contribution to housing delivery from 15,000 to 30,000 new homes annually, and...

Loan market and developments Moody’s retains a ‘stable’ outlook for Bermuda’s banking sector, reflecting contingent liability risk linked to the island’s sizeable banking system. The agency notes that Bermuda’s very strong institutional framework, very high per capita income and robust external position are fundamental credit strengths that enhance the jurisdiction’s resilience to prospective shocks. The Bermuda Monetary Authority confirms that, as at September 2024, banks’ capital adequacy sits comfortably above Basel III minima, with the sector reporting: a risk asset ratio of 25.6%; a common equity tier 1 capital ratio of 24.2%; a leverage ratio of 7.7%. Looking ahead, no significant changes are anticipated to Bermuda’s banking or contract laws. Basel III regulatory standards have now been fully phased in, including the Liquidity Coverage Ratio, the Capital Conservation Buffer and the Net-Stable Funding Ratio requirements...

This glossary sets out many of the expressions commonly used in the leveraged finance market. Words appearing in the definitions in bold are defined elsewhere in this glossary. For further banking terminology, please refer to the main Banking & Finance Glossary... Acquisition finance glossary—A Acceleration Acceleration is the formal action taken by the agent, on the instructions of the majority lenders, following an event of default, such as making a demand for early repayment of the loan. See Practice Note: Accelerating a loan for more information... Accordion feature/accordion facility An accordion, also called an incremental debt feature, is a mechanism in the facilities agreement that, provided specified conditions are satisfied (for example, pro forma compliance with a leverage test), permits those lenders under the facilities agreement who wish to do so to advance additional debt. The terms for that extra debt are typically captured in an increase notice. This accordion or incremental debt flexibility is different from structural adjustment, which usually requires the majority consent...

This Practice Note: sets out what LIBOR is gives a concise overview of the developments influencing LIBOR in recent years and the anticipated forthcoming changes examines in depth the Wheatley review and the measures taken to carry out its recommendations—please note these sections cover historical developments and are not maintained For up-to-date developments concerning LIBOR, see LIBOR developments tracker [Archived]. What is LIBOR? LIBOR (the London Inter-Bank Offered Rate) is the interest rate at which one bank (acting as lender) offers funds to another bank (as borrower) within the London inter-bank market. It is commonly employed as a benchmark across a wide range of finance transactions. From 1986 until 1 February 2014, LIBOR was administered by the British Bankers’ Association (BBA) (since 1 July 2017, the BBA has been part of UK Finance). Rates overseen by the BBA were generally termed ‘BBA LIBOR’ to differentiate them from a particular bank’s own LIBOR. On 1 February 2014, responsibility for administering...