For a long time, private banking lending has been mostly driven by growth, on both sides of the balance sheet. Today, it is increasingly driven by capital efficiency. As Basel III final reforms continue to be implemented across major jurisdictions, banks are reassessing the economics of Lombard lending, real estate financing, and bespoke credit solutions for wealthy clients. The institutions that adapt fastest may gain a significant competitive advantage.

Traditionally, lending has played a dual role in private banking. It generates interest income while strengthening client relationships by providing liquidity without forcing the liquidation of investment portfolios. For many clients, credit is no longer just a financing tool; it is more and more an integral component of wealth management strategy and growth, combining portfolios of different assets with optimised leverage.