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Evaluation of the Effects of Financial Regulatory Reforms on Infrastructure Finance
Type
work report
Date Issued
2018-11-20
Author(s)
FSB, Evaluation Team
Abstract (De)
This report presents the results of the evaluation of the effects of financial regulatory reforms on infrastructure finance (IF). The evaluation focuses on IF provided by the financial sector in the form of corporate and project debt financing (loans and bonds). While the G20 reforms do not specifically target the provision of IF, a broad range of financial regulations can potentially affect it. The evaluation draws on a broad range of information sources and is based on multiple analyses. Trend analysis suggests that the overall amount of IF has grown in recent years after a temporary drop during the financial crisis. Lending spreads for IF have returned to lower levels in recent years following a spike during the crisis, but they remain above pre-crisis levels. There are some key differences in the provision of IF in emerging markets and advanced economies compared to advance economies (AEs). Following the crisis, new financing models and market participants have led to a greater diversity in the sources of IF and changes in market practices, but mainly in AEs. Empirical analysis and other qualitative sources suggest that the effect of G20 financial reforms on IF has been of a second order relative to other factors. For G-SIBs, the analysis shows that the reforms have contributed to shorter average maturities of their infrastructure loans. Ex ante impact assessment studies of the effects of core G20 reforms found strong net overall benefits. A greater diversity of IF providers may contribute to the stability of IF over time. For the financial reforms considered by this evaluation, the analysis does not identify material negative effects on IF to date.
Language
English
Publisher
Financial Stability Board
Official URL
Division(s)
Eprints ID
260661