Reported 7 months ago
The Prudential Regulation Authority (PRA) in Britain has requested Barclays to assess its exposure to leveraged finance as part of a broader examination into banks' connections with the private equity industry. The Bank of England highlighted in April the lack of clarity among banks regarding their comprehensive exposure to private equity, potentially leading to significant losses. The review, conducted through a section 166 report, involves an independent investigator evaluating the situation. The $8 trillion global private equity sector's risky leverage makes it challenging for regulators to determine its financial stability impact. This is just the beginning of anticipated reviews across the industry, starting with Barclays as reported by Bloomberg News. (Reporting By Lawrence White; Editing by Toby Chopra)
Source: YAHOO