New capital requirements on Wall Street will rock the green finance boat: Basel 3 Endgame — the final stage of regulations imposed in the US after the 2008 financial crisis — is expected to significantly affect Wall Street’s biggest banks’ ability to finance green projects, Bloomberg wrote. The regulations will increase capital requirements, making it more expensive for banks to provide finance — “fundamentally alter[ing]” their approach to risk and affect their ability to allocate funds to green projects.

The US’ biggest banks aren’t happy: JP Morgan alleges that the new rules would “for sure” affect its green projects financing, while Goldman Sachs CEO David Solomon warned that the new regulations would push the capital requirements for some of its green energy products to “quadruple.” Citigroup Vice Chairman of Banking, Capital Markets and Advisory Jay Collins also chimed in on the topic in an interview cited by Bloomberg, claiming that “as long as there is so much policy noise and regulatory fog, the multifold increase in climate investment won’t happen.”

ADX

9,498

+0.2% (YTD: -7.0%)

DFM

4,001

+0.5% (YTD: +19.9%)

Nasdaq Dubai UAE20

3,770

+0.3% (YTD: - 6.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5.0% o/n

+5.5% 1 yr

TASI

11,601

+0.5% (YTD: +10.7%)

EGX30

24,792

+0.3% (YTD: +69.3%)

S&P 500

4,719

0.0% (YTD: +22.9%)

FTSE 100

7,576

-1.0% (YTD: +1.7%)

Euro Stoxx 50

4,549

+0.2% (YTD: +19.9%)

Brent crude

USD 76.92

+0.5%

Natural gas (Nymex)

USD 2.50

+0.3%

Gold

USD 2,036

0.0%

BTC

USD 40,956

-2.7% (YTD: +150.1%)

THE CLOSING BELL-

The ADX rose 0.2% on Fridayon turnover of AED 1.62 bn. The index is down 7.0% YTD.

In the green: Gulf Medical Projects Company (+11.6%), National Bank of Fujairah (+11.1%) and Ooredoo (+8.0%).

In the red: Hayah Ins. (-9.8%), Palm Sports (- 9.1%) and Kiko (-5.9%).

The DFM rose 0.5% on Fridayon turnover of AED 442.66 mn. The index is up 19.9% YTD.

Tags: