Portfolio Lead Advisory Services | Deloitte | Financial Advisory services and reports has been added to your bookmarks.
Rebuilding balance sheets
Portfolio Lead Advisory Services
Banks need to evaluate their loan portfolios, analyze their strategic options, and recover value from their non-core, under-performing, and illiquid financial assets.
Approximately €2.5 trillion of non-core assets and non-performing loans reside on the balance sheets of European banks. As the Eurozone financial crisis has evolved, however, there’s been a significant shift in the strategy of financial institutions towards deleveraging and balance sheet management. This in part reflects their response to a range of challenges, including increased capital adequacy requirements (both the level and quality of capital) and funding pressure due to the reduction in inter-bank lending.
A number of institutions that received bailout monies are under additional pressure to divest certain parts of their business and comply with state aid requirements.