Goldman Sachs has its sights on the European wealth management market, as the bank seeks to diversify away from investment banking.
The US bank is to expand its European wealth management business with the launch of a European lending unit for its private clients, the FT reported.
It is a move that puts Goldman in direct competition with a number of private banks that have traditionally dominated the space.
The new European lending arm is targeting a $5 billion loan book over the next three years, providing secured loans for liquidity facilities, portfolio diversification, tax payments or luxury purchases. It will form part of Goldman's London-based International Bank.
Goldman already has a lending business for high net worth clients in the US, which it established in the wake of the financial crisis However, in Europe the bank has not been as active and has only given a limited number of margin loans, where it has lended against securities, to its wealthy customers.
The FT reported the bank also aims to expand its presence in the UK top end mortgage market by offering mortgages for prime properties. It is expecting regulatory approval within the next 12 months.