Bank of England Scrutinises Barclays Over Claim Traders Misrepresented Private Credit Loans
The Bank of England is examining whether Barclays traders misrepresented illiquid private credit loans to understate their risk, after an insider raised concerns, Reuters reported on October 19, citing the Financial Times.
The Bank's Prudential Regulation Authority (PRA) received a complaint earlier this year about how the bank was recording derivatives used to finance private credit loans, the report said, alleging that the way Barclays handled the deals breached PRA rules. Shares of the British bank fell around 2% in early trade on Monday.
Barclays did not immediately respond to a Reuters request for comment, and the Bank of England could not immediately be reached outside regular business hours. Private credit has grown rapidly in recent years, and how banks account for derivatives used to finance such illiquid loans is drawing closer regulatory attention; what action, if any, follows is for the regulators to say.
Source: GSM · USA (original Chinese edition)
Photo: 图：巴克莱位于伦敦金丝雀码头的全球总部。来源：Wikimedia Commons，CC BY-SA 4.0 / Photo: Barclays' global headquarters at Canary Wharf, London. Source: Wikimedia Commons, CC BY-SA 4.0
