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Message: <blockquote data-quote="Andrei Radu" data-source="post: 226481" data-attributes="member: 36777"><p>Hi [USER=41021]@CharlesT47[/USER] while this is not a topic I am extremely knowledgeable about, I will list some points of analysis that you could consider addressing in your answer:</p><ul> <li data-xf-list-type="ul">The positive impacts may be gradual rather than immediate, as from my understanding the lowering of the capital adequacy threshold will only be implemented in 2027;</li> <li data-xf-list-type="ul">This is thought to come with a positive effect on general economic growth, as an increase in credit supply allows more borrowing from both businesses (and thus to invest in upscaling, increasing productivity, research and development, and hiring), and consumers (thus increasing their purchasing power and boosting the demand and revenue of aforementioned businesses), which can create a virtuous growth cycle. </li> <li data-xf-list-type="ul">At the same time, the relaxation of capital rules always comes with at least some increase in systemic risk in the banking sector, thus making economic growth and financial stability and resilience competing objectives that need to be balanced. In your analysis, you may want to consider this negative side effect and express a judgement as to whether, all thing considered, this is a good idea or not. </li> <li data-xf-list-type="ul">In terms of finance dealmaking, this should increase activity of traditional finance (as it will be easier for more companies to take out more loans) and securitisation and capital markets departments of law firms (as banks will then be looking to package and sell a greater amount of debt on secondary markets);</li> <li data-xf-list-type="ul">In terms of corporate dealmaking, I think your assessment is generally on point. I would agree with you that capital intensive industries stand to benefit most from this, and, in particular, life sciences companies could be big winners, as this is currently thought to be the area where UK companies innovate the most and are most relevant in the modern global economy. On this point, I would also add that PE funds likely stand to benefit a lot, as availability of huge amounts of debt finance is central to the leveraged buyout model. </li> </ul></blockquote><p></p>

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

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