Banks
Opportunities for growth in an uncertain economy
A long history supporting banks on the most important issues they are facing
Our experience includes advising on strategic and significant mandates, including in relation to: asset/portfolio disposals; banking and finance; capital raisings and recapitalisations; competition, antitrust and state aid; debt capital markets; equity-linked transactions; global regulatory reform; liability management; litigation and contentious financial regulation; M&A and divestments; refinancing and restructuring; regulatory capital; and tax.
We pride ourselves on our ability to provide market-leading advice to major international banks, emerging players and other financial institutions on the broad spectrum of complex and business critical issues they are facing. A few areas of particular focus in the sector at this current time are set out below:
Increasingly relevant for financial institutions. Banks can no longer make claims without committing to action. Risk management will be key. Ongoing focus on practical initiatives to embed ESG into business and operating models, identify growth opportunities and meet stakeholder needs whilst also creating value.
To find out more about our work in this area, see:
No longer an option for banks, rather a necessity to remain competitive and continue meeting client demands. Unprecedented coverage relating to emerging technologies such as AI and blockchain as they continue to gain ground. We have seen rapid change in the payments space in recent years and it is likely there will be further technological advancements in the coming years. This is an ongoing area of focus supporting banks to fuel innovation, drive revenue growth and increase market share.
To find out more about our work in this area, see:
Many institutions have paused plans whilst waiting for market uncertainty to stabilise and interest rates to level off. M&A will play a crucial role as banks seek transformation amidst market turbulence and ongoing macroeconomic challenges. It is likely that we will see M&A increase as some institutions seek to enhance capabilities and support future growth – across both traditional and emerging players. By contrast, divestitures will continue as an avenue for banks to improve operations and recalibrate business strategies.
To find out more about our work in this area, see:
In the UK, both the Edinburgh Reforms and the Retained EU Law Bill could substantially alter the upcoming regulatory agenda. The FCA’s Consumer Duty remains a priority and Basel 3.1 is due to be implemented in January 2025, significantly changing how risk-weighted assets are calculated. There is an ongoing focus to meet core and emerging banking supervision and regulation expectations globally. In the EU, the ECB is consulting on effective risk data aggregation and risk reporting and the SEC is also likely to make a number of decisions on supervision and regulation over the coming months. There is potential for tensions between government agendas and the regulators’ drive for safety and soundness.
To find out more about our work in this area, see:
Banks and other financial institutions face a considerable variety of issues which have the potential to lead to litigation. They need strategic advice which is aligned with the requirements of the relevant business area and the wider institution, including consideration of regulatory, reputational and financial risk which comes with litigious matters. We provide that expertise and have recently worked with clients on some of the largest and most complex disputes in the sector.
The current environment will likely give rise to financial services claims, proceedings, disputes and regulatory enforcement across a broad and diverse range of areas including Insolvency, ESG risk, digital asset fraud, financial and trade sanctions, consumer duty breaches, securities litigation and competition litigation.
To find out more about our work in this area, see:
- Litigation and Investigations
- Explore Banking Litigation at Linklaters
- Financial Services Investigations
- Competition Litigation
The impact of higher rates and a slowing economy will likely have a negative impact on bank loan quality. Markets and investment strategies will remain unsettled, quality will be key with select opportunities in growth and value. Eurozone bank lending growth forecast is expected to fall this year and next as rising interest rates drive a decrease in demand. NPLs are expected to rise across Europe, with a focus on Spain and Italy in particular.
To find out more about our work in this area, see:
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