Debt Finance SGS 1

Annotations:

• · key documents  · ways to negotiate  · parties involved  · role of each party 

1. Banking system overview
   1. Regulation
      1. FSMA

         Annotations:

         • Lending is not a specified activity but "accepting deposits by way of business" is. 
      2. UKLA

         Annotations:

         • Responsible for approving bond prospectuses
      3. FCA

         Annotations:

         • Supervision of banks and protection of consumers in the context of financial services 
   2. Debt Providers
      1. real debt providers

         Annotations:

         • individuals and banks which deposit money with the bank and the bank then uses this to lend to individuals and companies
      2. interbank market

         Annotations:

         • if a bank does not have enough deposits from the real debt providers to facilitate a loan then it can borrow from other banks 
         1. LIBOR (London Interbank Offered Rate)

            Annotations:

            • Interest rates payable when banks lend to each other  Can have a knock on effect to the amount that a borrower will have to pay HIBOR, STIBOR and EURIBOR
   3. Key Business Issues