Private Equity

Banks slammed over lax attitude to private equity risk

Bank of England tells lenders that stress tests and board oversight aren’t up to scratch

As private markets branch out further into mainstream finance, Threadneedle Street is concerned about contagion
As private markets branch out further into mainstream finance, Threadneedle Street is concerned about contagion Photo: Getty Images

Banks have been given until the end of August to fill gaps in how they manage their private equity exposures after a Bank of England review found they are running a host of risks.

Banks are routinely unable to measure overall credit and counterparty risk from their ties to the fast-growing private equity sector, the Bank said on 23 April.

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