Regulation

Banks face another warning to crack down on private markets ties

New Basel Committee on Banking Supervision guidelines target exposures to non-bank counterparties

Regulators around the world worry banks have let their relationships to the fast-growing space get out of hand
Regulators around the world worry banks have let their relationships to the fast-growing space get out of hand Photo: Getty Images

Banking’s top global watchdog has issued new guidelines on counterparty credit risk, in the latest sign that regulators are cracking down on lenders’ exposures to private markets firms.

The Basel Committee on Banking Supervision, a group of leading central bankers, is consulting on how to resolve “long-standing industry weaknesses” in risk management.

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