Goldman Sachs plans to double its lending to wealthy private bank clients with account sizes surpassing $10 million in the next five years. 

Goldman Sachs Plans to Double Lending to Wealthy Clients

According to Reuters, this move aims to collect more deposits to fuel increased lending, as disclosed by Nishi Somaiya, Goldman's global head of private banking, lending, and deposits.

The Wall Street giant's new approach focuses on providing more loans to wealthy individuals and families for huge purchases, including luxury homes and sports teams. This initiative is part of Goldman Sachs' effort to boost its wealth management business.

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Goldman Sachs' Clients With a Net Worth of At Least $30 Million

Although Goldman Sachs has not revealed the total scope of its lending to affluent clients, it noted that these clients typically possess a net worth of at least $30 million. 

As of the first quarter, the private bank's outstanding loans amounted to $33 billion. This figure does not include other undisclosed commitments, which may increase the total significantly.

Goldman Sachs CEO David Solomon noted that these clients have borrowing needs and that Goldman Sachs is well-positioned to serve them competitively.

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