Caution at local commercial banks – coupled with the eagerness of large investment banks to foster relationships with private equity players – means large real-estate deals fuelled by back leverage could be primed for a comeback in Europe.

Higher interest rates will weigh heavily on the property development lending that makes up the bulk of OakNorth’s loan book. But chief executive and co-founder Rishi Khosla tells Euromoney the bank can maintain its ultra-low loan losses and keep growing.

Credit intelligence specialist OakNorth is working with a consortium of US banks to assess physical and transition climate risk in loan portfolios. The motivation for the banks is clear: self-preservation in the face of growing climate-related disruption.

The large Japanese lender joins PNC in taking the loan underwriting and monitoring system developed by a new lender to UK SMEs and tested through Covid.

UK banks have faced a torrent of criticism for slow delivery of the coronavirus business interruption loan scheme, but the real problem is that the UK is providing loans that need to be repaid. Grants offered by governments such as Germany look better designed.

OakNorth shows that SME lending need not be unduly risky and can be highly profitable, and other new banks are following its example.