BoE probes Barclays’ handling of private credit risks, FT reports

What happened: The Bank of England's Prudential Regulation Authority is examining whether Barclays (LON:BARC) traders misrepresented illiquid private credit loans to reduce the bank's regulatory capital requirements, the FT reported, citing people familiar with the matter. Key numbers: The report cites the $2 trillion Why it matters: The classification of assets as trading or banking book positions affects the capital banks must hold against potential losses. The PRA has previously warned banks against repackaging illiquid assets as tradeable instruments to reduce capital requirements.

The Bank of England's Prudential Regulation Authority is examining whether Barclays (LON:BARC) traders misrepresented illiquid private credit loans to reduce the bank's regulatory capital requirements, the FT reported, citing people familiar with the matter.

The classification of assets as trading or banking book positions affects the capital banks must hold against potential losses. The PRA has previously warned banks against repackaging illiquid assets as tradeable instruments to reduce capital requirements.