US regulators criticised some reserve-based lending facilities from exploration and production issuers during an annual bank loan review after oil prices had fallen in half from more than US$100 in July 2014, making it less likely these lenders will provide more credit to cash-strapped energy companies. Banks backing the criticised loans have had to set aside more capital against those deemed by regulators to be riskier. The lenders will be more cautious in extending credit to oil and gas companies, and other sources of capital will be more costly for already struggling borrowers.
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