The Financial Stability Board (FSB) on Wednesday published a consultation report on the Evaluation of the effects of financial regulatory reforms on infrastructure finance, and is seeking public feedback on the results of the evaluation to date.
According to the report, post-crisis reforms, such as tougher capital rules for banks and increased oversight of over-the-counter (OTC) derivatives markets, have not had a material negative impact on the cost or provision of infrastructure finance.
The overall amount of finance activity has grown again, after an initial decline during the financial crisis, the report finds, and lending spreads have returned to lower levels after an initial spike.
Additionally, the reforms have contributed to shorter average maturities for infrastructure loans by global systemically important banks.
There are indications that market-based financing has supplanted bank financing in recent years, which may have been driven by the banking reforms.
Comments on the paper are due by Aug. 22.
Next month the FSB plans to publish a report on the impact of the post-crisis reforms on incentives to centrally clear OTC derivatives.
In the months ahead, the FSB will launch an evaluation of the effects of policies designed to address the problem of banks that are too-big-to-fail, but that report won’t be completed until 2020.