Non-bank Finance to take Bigger Chunk of Loan Market

Non-bank finance is set to play a bigger role in the loan market says the Loan Market Association (LMA), with a poll of members showing that 86% expect it to increase its share over the next five years. Of these, 30% believe the increase will be ‘significant’.

The LMA’s annual conference, held in London on September 9, attracted 850 loan market professionals. “The LMA’s membership is at its highest ever, having recently surpassed 570 organisations, covering 57 jurisdictions, with 87 new members joining this year,” the association announced, adding that it offered “evidence of the LMA’s expanding role in the Europe, the Middle East and Africa [EMEA] loan market.”

The poll of conference attendees also showed that 68% of respondents believe the syndicated loan market will grow by at least 10% in the next 12 months.

Among the other poll results:

• Thirty-eight per cent of respondents believe that corporate mergers and acquisitions (M&As) is where the best opportunity will lie in the next 12 months.
• Fifty per cent of respondents believe that competitive pressure will be the greatest influence on the syndicated loan market over the next 12 months.
• Forty-seven per cent of respondents believe that a more standardised market across jurisdictions is required in order for the European private placement market to compete with the US.
• Forty-five per cent of respondents are most concerned by government intervention and regulation when considering risk in the markets in which they operate.

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