CEO says bank has ‘right controls’ in place despite warnings about industry from IMF and Bank of England
Barclays has insisted it has the right controls in place to manage a £20bn exposure to the under-fire private credit industry despite warnings from the International Monetary Fund (IMF) and the Bank of England.
The bank’s chief executive, CS Venkatakrishnan, said it ran a “very risk-controlled shop” and was comfortable with its lending standards for the private credit industry.
That was despite taking a £110m loss over the US sub-prime auto lender Tricolor, which collapsed amid fraud allegations last month.
Losses stemming from the dual collapse of Tricolour and the US auto parts company First Brands have raised fears over potentially weak lending standards in the private credit industry. There are concerns that the potential fallout could destabilise traditional banks that issue loans to the shadow banking sector.
