Banking & finance annual report
to their legal advisers – one
partner remarks that “substantial
shareholder changes in banks mean
there is often a reset in the client-
lawyer relationship”.
Banks cannot ignore the rise
of the fintech sector, lawyers say;
they also anticipate that companies
like Google will have an ever-
growing role in the banking sector.
Such developments mean that
banking lawyers have to become
increasingly technologically
minded, one partner says. “If
you want to add value for clients,
you have to have data protection
knowledge,” says one Lisbon
managing partner. SPS Sociedade
de Advogados partner Nédia
da Fonseca Nunes says: “The
investment in technology has
played a crucial role in banking
development, significantly
changing the paradigm in the
rendering of these services.”
However, despite the rise of the
fintech sector, lawyers warn that
the more traditional banks are not
properly addressing this emerging
threat at board level.
Portugal: What are the biggest challenges clients in the banking and finance
sector currently face?
“If we look at banks operating in Portugal, we can identify two major challenges: (i)
from a regulatory standpoint, to continually adapt and adjust internal policies to meet
the demands of increasing regulation; and (ii) being able to continue to be active
and competitive in the loan markets. As for other types of financial institutions and
investors, mostly operating in the restructured assets submarket, the main challenges are
associated with having the capability to easily and efficiently buy, structure, workout and
dispose of assets.” Nuno Azevedo Neves, partner, DLA Piper ABBC
“Assuming banks slowly return to traditional activity – which is to lend money to
companies and individuals – we believe it is a challenge (both to lenders and borrowers)
to properly hedge the lending/borrowing activity and the compliance restrictions, mainly
with regard to cross–border financial transactions.” Alexandre Jardim, partner, PBBR
“Considering that the requirements for banks’ credit approval have been more severe,
it will be important to obtain financing from alternative sources, notably through more
direct lenders.” Madalena Pizarro, senior associate, CCA Ontier
“Challenges posed by the Portuguese economy have led to a major restructuring not
only of almost all of the credit institutions and financial companies, but also of the way
they do business. These challenges include the need for these entities to comply with
increasingly demanding regulatory rules and requirements, in particular with regard
to the capital ratios that must be fulfilled by the banks.” Rafael Teles, lawyer, Caiado
Guerreiro
“The transposition of several directives and the application of EU regulations that
will force financial entities to adjust their activity and the way they do business. They
include the establishment of a new regulated trading platform called Organised Trading
Facility (OTF), rules related to electronic payments, rules on insurance distribution, and
regulations concerning packaged retail and insurance-based investment products.” João
Espanha, partner, Espanha e Associados
Real estate refinancing on the increase
The refinancing of real estate assets
is increasing due to the fact the
associated costs have decreased, says
Pablo Rodríguez Abelenda, partner
and head of the finance practice Roca
Junyent.
“Five years ago, clients needed to
refinance because they were running
out of money,” says Rodriguez. “Now
there is a lot of liquidity in the market
and the cost of financing has dropped,
so the conditions to refinance are
extremely good.”
Consequently, investors that
financed a real-estate asset five or
six years ago, for example, when the
cost of financing was higher, are now
taking the opportunity to review the
cost. “They are either selling the assets
they had ten years ago and obtaining
a profit from the sale, or they are
improving their financing conditions
by getting a reduction in the cost of
the finance,” Rodriguez says.
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However, while there is still some
residential real estate activity within city
centres, it is commercial real estate such as
shopping centres, offices and hotels that
is benefiting from the economic recovery.
“Business real estate is generating revenue
and attracting the attention of international
investors,” explains Rodriguez.
“Residential assets were designed for
a market that is totally different to that
which exists now.”
Rodrigues attributes the refinancing
trend to the increase in consumer
purchases. “Over the last 18 months,
consumers have been coming back and
they are buying,” he explains. “This means
those investors who took the opportunity
to buy a shopping centre during the
economic crisis, in the belief that the
consumer would return, are now reaping
the benefits.” As a result, the focus is no
longer on new developments but on using
refinancing to reinvest in existing assets,
says Rodriguez.
Pablo Rodríguez Abelenda
March / April 2017 • IBERIAN LAWYER • 31