European bank lending is getting tighter. Private credit is showing cracks. Here’s what’s happening, and what Belgian companies should do about it.
Banks across Europe have structurally tightened credit standards. They are more selective on counterparties, pricing and structure.
The main drivers remain:
🔹lower risk appetite
🔹higher regulatory scrutiny
🔹stricter allocation of risk-weighted assets (RWAs) due to shareholders’ profit requirements.
Today, banks prioritize stable, predictable cash flows, non-lending income opportunities, and low consumption of risk-weighted assets. If you don’t meet these expectations, you are competing harder for the same credit appetite, making strong preparation essential.
For many Belgian corporates, formerly straightforward bank processes now require much sharper preparation and more strategic positioning.
Private credit has grown into a multi-trillion-dollar market. But recent events have underscored both the scale and some fragility of the private lending ecosystem.
In February, Blue Owl, one of the world’s largest private credit managers, took drastic steps: permanently restricting withdrawals from key retail-focused funds and selling $1.4 billion in loan assets to cover liquidity needs. This triggered a broad sell-off across private credit managers and raised serious questions about whether some private credit structures can deliver on their liquidity promises.
JPMorgan CEO Jamie Dimon has also sounded the alarm, warning that credit market behavior increasingly mirrors the period before 2008: high asset prices, aggressive lending, and risky behavior to chase yield. Credit spreads remain tight, but underlying risks are building as non-bank players increasingly shape market dynamics.
Fundraising hit record levels in 2025, and global capital keeps flowing into Europe’s maturing ecosystem. But underneath the headline numbers, default risks are rising, more deals use PIK structures and covenant-light terms, and the gap between strong and stressed borrowers is widening. Managers are becoming more selective, not less.
Companies need to approach private credit with the same rigour they would apply in any bank negotiation.
Whether you’re working with banks or private lenders, the rules have changed. Structuring matters more than ever, and so does choosing the right partners.
The companies that come out ahead are the ones that prepare sharper, structure smarter, and don’t rely on a single source of capital. Many Belgian companies are already blending both worlds: banks for working capital and relationships, private credit for growth, acquisitions, or refinancing flexibility. The key is balancing both in a coherent, resilient capital structure.
Ernest Partners helps Belgian companies structure smarter, access the right capital, and build financing that lasts. We connect companies with the right financiers based on their needs, leveraging our strong knowledge of the Belgian financing ecosystem.
Would you like to discuss your specific situation? Reach out via info@ernestpartners.eu.
