In 2014, we examined the changing European banking landscape in our Thought Leadership report, Navigating the European loan portfolio market, following the results of the European Central Bank’s stress tests. The report identified over €850 billion non-performing loans on European bank balance sheets. According to new Linklaters analysis, there is now over €1 trillion of NPLs on banks’ balance sheets across Europe.

 To some, these figures can bring opportunity. Purchasers who are able to navigate the market knowledgeably and analyse each transaction on a jurisdiction by jurisdiction basis will be best placed to invest in European loan portfolios. We have advised on complex solutions for the management and/or restructuring of loan portfolios, whether for balance sheet management, regulatory capital, access to government liquidity schemes, restructuring purposes or otherwise. Do get in touch with your usual Linklaters contact if you would like guidance.