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Bank of England examines Barclays private credit loan records

Published

The Bank of England is examining whether Barclays traders misrepresented illiquid private credit loans to understate their risk, according to a Financial Times report. Barclays shares fell 2.6% in early trade on Monday, and the FTSE 100 fell 0.9%.

The Prudential Regulation Authority (PRA) received a complaint earlier this year about how Barclays recorded derivatives used to finance private credit loans, people familiar with the matter told the newspaper. The complaint alleged a breach of PRA rules. Those rules restrict banks from placing derivatives backed by illiquid collateral in the trading book without enough evidence.

People familiar with Barclays' positions said the bank has built up billions of dollars of exposure to private credit loans through these derivatives. Barclays traders argued that the exposure counts as a traded position. They said a matching swap with another counterparty hedged it.

The Bank of England declined to comment. In an emailed statement, Barclays said it takes seriously its regulatory obligations in markets where it operates. Barclays shares stood at 421.4 pence at 0750 GMT on Monday.

Key facts

Who
Barclays (bank under PRA examination over derivatives accounting for private credit loans); Prudential Regulation Authority (regulator that received the complaint and is reportedly examining Barclays); Bank of England (regulator examining the claim)
What
According to the FT, citing unnamed sources, the PRA received a complaint earlier this year alleging Barclays' handling of derivatives financing private credit loans breached PRA rules. The report says Barclays has built up billions of dollars of exposure to private credit loans through these derivatives, and that Barclays traders argued the hedging made the position a traded one.
When
20 October 2026
Where
London, United Kingdom
Status
Reported

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