The Netherlands—cross-border banking and finance guide
Produced in partnership with Ploum
The Netherlands—cross-border banking and finance guide

The following Banking & Finance guidance note Produced in partnership with Ploum provides comprehensive and up to date legal information covering:

  • The Netherlands—cross-border banking and finance guide
  • Loan market and developments
  • Lending
  • Security and guarantees
  • Enforcement
  • Intercreditor issues
  • Governing law and disputes

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments

The increased mandatory capital buffers for financial institutions continue to provide for reduced numbers and size of transactions in the Dutch loan market when compared to the pre-credit crisis era. Foreign banks who used to lend to Dutch borrowers on a frequent basis are generally still less inclined to do so in the current climate. Brexit may be a driver for this. In real estate finance, we still see sufficient appetite from foreign, mainly German, banks and funds, to invest in the Netherlands. The Dutch Central Bank, however, is concerned about the increasing market prices of real estate in the Netherlands. Dutch banks remain to a large degree domestically orientated and prefer to extend credits as part of a club or syndicate where previously similar sized credits were extended on a bilateral basis. Despite the expansionary monetary policy of the European Central Bank and the fact that, in general, there is sufficient capital available, funding from banks in Europe and the Netherlands by way of loans is still limitedly available. Borrowers, on the other hand, are increasingly looking for alternatives to bank financing. As a consequence, with respect to large companies, there has