Open AccessBasel III and the Future of Project Finance Funding
Author(s) -
Tianze Ma
Publication year - 2016
Publication title -
michigan business and entrepreneurial law review
Language(s) - English
Resource type - Journals
eISSN - 2375-7558
pISSN - 2375-7523
DOI - 10.36639/mbelr.6.1.basel
Subject(s) - basel iii , project finance , basel ii , market liquidity , risk weighted asset , portfolio , capital requirement , finance , business , economics , basel i , financial system , microeconomics , profit (economics) , capital formation , financial capital , incentive
This paper seeks to analyze the new requirements in the Basel III banking regulatory framework and explore their impact on commercial banks’ project finance portfolio. The paper begins with a general introduction of the Basel Accords, followed by an analysis of the changes in the Basel III requirements and their potential impact on project finance, in particular the effects of the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR). The paper ends with a discussion of alternative sources of project finance funding that emerged as a result of the new regulatory regime.