The Bank of England's Prudential Regulation Authority (PRA) has begun reviewing Barclays' handling of private credit loans this year, according to the Financial Times. The review was triggered by concerns raised by a Barclays insider.
The regulatory scrutiny focuses on whether financial derivatives were incorrectly logged in Barclays' accounting records. Such misclassification could potentially inflate the bank's reported profits, according to the reporting.
Barclays has faced mounting pressure over its private credit exposure. The private credit sector itself has drawn regulatory attention over opacity, valuation practices and concentration of leverage among large institutional borrowers.
No details about the scope of the PRA review, the specific loans under examination, the scale of any potential accounting errors, or Barclays' response to the regulator were provided in the available information.