Barclays Plc has defended its reporting of private credit holdings following a report that the Bank of England’s Prudential Regulation Authority is reviewing whether the bank misrepresented illiquid private credit loans. The review raised concerns that Barclays may have understated the risk associated with these loans.
A spokesperson for Barclays stated that the bank’s treatment of total return swaps aligns with accounting and regulatory capital requirements. The spokesperson also noted that Barclays has £15 billion in private credit exposure, with the majority of these holdings classified in the banking book.
The Bank of England’s scrutiny comes amid broader regulatory concerns about the transparency and risk management of private credit markets. Barclays’ response aims to reassure stakeholders that its reporting practices are in compliance with existing standards.