Because banks receive favorable capital treatment when a credit facility's tenor is shorter than one year, lenders increasingly offer financing with 364-day tenors and uncommitted extension option terms of up to 364 days.
The NYDFS issued final supervisory guidance requiring New York-licensed or chartered banking institutions and financial services companies to establish and maintain a framework.
In recent years, the concept of fractional CFO services has gained significant traction, especially among startups and small to medium-sized businesses.
With new banking rules on the horizon for financial institutions, lenders are looking for new strategies to bolster lending capacity and accommodate debt issuances.
The Federal Reserve failed to compel SVB Financial Group to contribute its $4 billion in assets to Silicon Valley Bank. It had power to do so under Regulation Y, which requires holding companies.