Barclays private credit loans trigger Bank of England complaint

What happened: Barclays drew scrutiny from the Bank of England over claims its traders understated risks of opaque private credit loans. The PRA reportedly received a complaint this year citing concerns Barclays breached City rules over loans from shadow banks. Key numbers: Private credit is a $2tn (£1.5tn) industry. Why it matters: The PRA has warned banks about imprudent collateral recognition that could undercapitalise risks, and launched the world's first stress test of the private market sector, with Apollo, Ares, Blackstone, Carlyle and KKR participating.

Barclays drew scrutiny from the Bank of England over claims its traders understated risks of opaque private credit loans. The PRA reportedly received a complaint this year citing concerns Barclays breached City rules over loans from shadow banks.

The PRA has warned banks about imprudent collateral recognition that could undercapitalise risks, and launched the world's first stress test of the private market sector, with Apollo, Ares, Blackstone, Carlyle and KKR participating.