Barclays Stock Slides as Bank of England Probes Private Credit Loans

Barclays shares dropped after a report said the Bank of England has opened a probe into the bank's private credit loans. Private credit, lending done outside traditional banks and public bond markets, has grown rapidly in recent years, and regulators have repeatedly warned that it is harder to monitor for risk than conventional bank loans. The inquiry adds to pressure on a stock that was already sliding in the same session. For Barclays, the concern is less about a single disclosure than about what the central bank might find: if its underwriting standards on these loans turn out to be looser than peers', the bank could face capital or disclosure requirements that squeeze returns. What remains unresolved is the scope of the probe and whether it extends to other UK lenders with similar private credit books. No findings or formal action have been disclosed yet.