The Bank of England’s regulatory arm is reportedly reviewing how Barclays handles private credit loans, after concerns about the accuracy of records for financial contracts used in the arrangements. According to the Financial Times, the Prudential Regulation Authority began the review earlier this year following a complaint from within Barclays.
The issues centre on derivatives linked to the financing of private credit exposure. The Financial Times reports that traders allegedly misrepresented the extent of derivatives risk, and that Barclays may have understated exposure in its reporting. Other outlets covering the story similarly describe the probe as focused on whether Barclays’ documentation and risk accounting for these instruments are correct.
The regulator’s scrutiny fits within broader concerns about the private credit sector and how derivatives exposures are logged and disclosed. While the reports describe the review as ongoing, they do not provide details of any regulatory findings, penalties, or final conclusions at this stage.
