Expected Developments From Upcoming Basel Capital Rules

The U.S. federal banking regulators are preparing to finalize the Basel IV regulatory framework as early as this fall, the effects of which will have broad implications on U.S. financial institutions and the domestic commercial lending market.

Lenders and borrowers in the private investment fund finance sphere are no exception, and should expect that Basel IV will affect loan amounts, pricing, loan documentation and available lending products.

This article briefly discusses some key expected developments from the existing Basel III regime as applied to U.S. fund finance, then considers certain issues in the context of committed versus uncommitted lines of credit.