The European Central Bank has roughly doubled the number of banks covered by a
review of private-credit links, requesting detailed information on
private‑credit exposures from more than 20 lenders this year, sources said.
Previous rounds covered about 12 banks. Insiders said banks with material ties
to private credit will be required to report related details annually. Scrutiny
has risen after several funds imposed redemption restrictions in recent months.
Although private credit is much smaller in the eurozone than in the US,
regulators are concerned banks may lack systems to identify and aggregate these
exposures. "Compared with other assets on banks' balance sheets, these exposures
remain relatively limited overall, but are growing very fast. The key issue is
not only the size of the exposures, but whether banks have the ability to
effectively aggregate and identify these risks," said Sharon Donnery, a member
of the ECB's supervisory board.
