Market Chatter: Bank of England Probes Barclays Over Private Credit Risk Classification

05:20 AM EDT, 10/19/2026 (MT Newswires) -- Barclays (BARC.L) is facing a Bank of England inquiry into allegations that its traders understated the risks associated with illiquid private credit loans, the Financial Times reported Monday, citing people familiar with the matter. The review follows a complaint lodged earlier this year with the central bank's Prudential Regulation Authority, which alleged that the lender breached regulatory rules in its classification of total return swaps linked to illiquid private credit loans, according to the report. Barclays traders, however, maintain that hedging their exposure to the loans through matching trades with other counterparties qualifies the positions as trading assets, one of the sources told the news outlet. Bank of England told MT Newswires it does not comment on individual firms, while Barclays did not immediately respond to a request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)