INSIGHT
Default interest provisions, penalty clauses and the Makdessi Test12 December 2025
By Adam Berman
Welcome to Banking Brief, our quarterly update setting out key issues for banks and lenders to be aware of, keeping you informed on the emerging trends within the finance industry.
In this edition of Banking Brief, we bring together a wide-ranging set of legal and market insights relevant to lenders operating in the UK and internationally. We begin with recent case law affecting lender protections and enforcement, including guidance on the enforceability of default interest provisions under the Makdessi test and a High Court decision clarifying the limits of a mortgagee in possession’s powers where borrowers’ equity of redemption is at stake. Alongside this, we explore developments in Islamic finance, with practical overviews of Sharia-compliant structures in the UK and the continued growth and positioning of Islamic finance within the UK market.
This issue also looks outward, examining key international and cross‑border considerations for financial institutions. We cover the challenges of navigating sanctioned lenders in developing market financings, provide updates on the establishment of Oman’s International Financial Centre, and consider the implications of Saudi Arabia opening its capital markets to international investors. Rounding off the edition, we highlight responsible business and ESG‑focused themes in banking and finance, share insights from Lloyds Banking Group on championing Black‑owned businesses, and celebrate Trowers & Hamlins being named IFN Banking and Finance Law Firm of the Year 2025.
Together, these articles offer a practical and forward‑looking overview of the legal, regulatory and market issues shaping the banking and finance sector.
Latest edition
INSIGHT
The Court rejects mortgagee in possession's attempt to surrender mortgaged property01 December 2025
INSIGHT
Islamic finance in the UK: key issues on security, governing law, and enforcement16 December 2025
By Ben Neville
INSIGHT
Navigating sanctioned lenders in developing market financings11 February 2026
By Jonathan Grosvenor and Zubair Ahmed
INSIGHT
International Financial Centre Oman: can a new financial regime turn ambition into capital?29 January 2026
By Debopam Dutta and Salman Ahmed
INSIGHT
KSA CMA opens capital markets to international investors20 January 2026
By Bilal Kahlon and Moeen Qayum
Key themes at MIPIM
- Overall positive market sentiment.
- A feeling that the conflict in the Middle East will have a negative impact on the market, with the likelihood being that interest rates and inflation will increase in the coming months, which we are seeing play out now.
- A strong belief that the UK market is in a strong position to take advantage of the investment opportunities which are undoubtedly out there.
- Debt brokers were out in force in Cannes, which is indicative of healthier lending conditions.
- There are continuing concerns from lenders and developers that the process of getting through Gateway 2 and Gateway 3 of the Building Safety Act remains challenging.
- With the fragmented nature of the market, there continues to be strong demand for bridging loans, with a number new entrants joining the market and existing lenders re-positioning themselves to cater for the short term debt market.
Banking and Finance Partners Chen Ikeogu (left) and Eddie O’Hanrahan (right) at MIPIM 2026.
Spotlight
Responsible business newsletter - Banking and finance edition
In this edition of our Responsible business newsletter, we explore how responsible finance and blended finance are being used in practice to unlock investment, reduce risk and support projects with clear social value. From sustainability-linked loans to innovative public–private funding models, we look at how finance is enabling long-term resilience across the housing and public sectors.
Championing Black Business - a conversation with Paul Kempster, Lloyds Banking Group
In this podcast, Yetunde Dania, Partner and Head of Trowers & Hamlins’ Birmingham office, speaks with Paul Kempster, Managing Director and Head of Commercial Banking Coverage at Lloyds Business and Commercial Banking. They shine a spotlight on the growth of Black-owned businesses across the UK and the many factors involved in running and scaling a business.
Trowers named IFN Banking and Finance Law Firm of the Year 2025
Trowers received the award for its excellence in financing for domestic and international trade transactions and for demonstrating exceptional leadership and expertise in Islamic dealmaking for the year.
Meet the team
