Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Fintech»Deloitte: How a Credit Surge is Reshaping Corporate Lending
    Fintech

    Deloitte: How a Credit Surge is Reshaping Corporate Lending

    August 18, 20242 Mins Read


    Some are choosing to cooperate with private credit firms, acting as facilitators between their corporate clients and these new lenders. This approach allows banks to maintain client relationships while potentially reducing their credit risk exposure.

    Other banks, particularly large institutions, are opting to compete directly by building their own private credit capabilities. These banks can leverage their balance sheets, wealth management divisions, and investment banking groups to raise funds and source deals.

    Interestingly, the report reveals a significant disparity in how banks of different sizes are approaching this challenge. US globally systemic important banks (GSIBs) are pursuing multiple strategies, with some experiencing greater success than others in fundraising for bank-owned private credit funds.

    Regional banks, on the other hand, appear to be more vulnerable to the rise of private credit. A study by The Brookings Institution cited in the report found that “the lending model of the larger regional banks appears to be most exposed to competition from nonbanks”. 

    Surprisingly, seven of the regional banks researched by Deloitte have yet to announce any strategic initiatives to compete or cooperate in this space.

    Foreign banks are leveraging their wealth management teams to build capabilities, offering global wealth clients access to US-based private credit exposure. This approach could help them grow their presence in the US market.

    The report also highlights the potential impact of regulatory changes, particularly the expected Basel III endgame rules. Bank CEOs have expressed concerns about the constraints these rules could place on their ability to lend, potentially driving more business to less regulated entities like private credit firms.

    As the lending landscape continues to evolve, banks face the challenge of balancing strategic moves into private credit with regulatory and economic challenges. 

    The report suggests that it could take several years for most banks to fully adapt to these new conditions and effectively deploy strategic initiatives that incorporate private credit.

    “Banks should consider identifying their ability to compete or cooperate and create holistic strategies for this new era in credit,” the report advises. 

    “Failure to develop a strategy could put banks at risk of losing interest and fee income, as well as missing opportunities to arrange and divide deals to better serve clients.”



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    L’italien Azimut signe un accord contraignant avec FSI pour créer une banque fintech

    Fintech

    Onafriq nomme Simon Black en tant que directeur non exécutif indépendant

    Fintech

    Money20/20 dévoile le jury international de la première édition des Money Awards

    Fintech

    La fintech Airwallex valorisée à plus de 6 milliards de dollars lors de son dernier tour de table

    Fintech

    Plan stratégique financier 2025-2030 : Maurice mise sur la Fintech et la finance durable

    Fintech

    Transcript : Nayax Ltd. Presents at Barclays 15th Annual Emerging Payments and FinTech Forum, May-20-2025 02

    Fintech
    Leave A Reply Cancel Reply

    Top Picks
    Investments

    Partners Group lance un fonds de crédit secondaire privé avec Generali Investments

    Commodities

    How to trade WTI crude oil amid US recession, Iran-Israel war concerns? | Commodities

    Commodities

    L’or atteint un nouveau record après les menaces douanières de Trump

    Editors Picks

    Massive Dividend Triggers Stock Plunge While B2B Growth Accelerates

    May 10, 2025

    Comment l’intelligence artificielle transforme la fintech africaine en 2025

    March 7, 2025

    Prediction: These Could Be the Best-Performing Fintech Stocks Through 2030

    August 11, 2024

    How Tech Leaders Are Using Cryptocurrency in Business

    April 3, 2025
    What's Hot

    OECD FAO Agricultural Outlook 2024-2033 – World

    July 11, 2024

    Top 10: Largest Firms Involved in Financial Services

    October 30, 2024

    Gold price backs off record high, but analysts remain bullish

    October 23, 2024
    Our Picks

    Iris Energy Limited Sued for Securities Law Violations –

    October 29, 2024

    Hannah Gill’s real estate revolution

    October 15, 2024

    Section 40A(3) applies to revenue expenditure, not to capital investments: Delhi HC

    March 26, 2025
    Weekly Top

    China Carbon Neutral Development et China Agricultural Sea Rice signent un accord de coopération stratégique

    May 22, 2025

    9 Highest Dividend-Paying Stocks in the S&P 500

    May 22, 2025

    La Libre Antenne de Max du 22 mai

    May 22, 2025
    Editor's Pick

    Single-Family Landlords Say This One Expense Is Too High

    August 9, 2024

    Speculative surges in the Shanghai market fuels alumina’s record-breaking rally

    October 18, 2024

    China hikes import duties on US agricultural and food products by up to 15% – The Irish Times

    March 4, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.