Banks risk “significant” losses on private equity exposures – BoE official
Leverage, illiquidity and complex structures make funds vulnerable, executive director says
Systemically important banks are at risk of incurring “significant and correlated losses” on their exposures to private equity funds, a Bank of England official has warned.
Nathanaël Benjamin, executive director for financial stability strategy and risk, said the private equity sector has grown from $2 trillion globally in 2013 to around $8 trillion in 2023. The related private credit sector stands at $2 trillion, Benjamin said at an event in London on April 22.
Increasingly, private equity and
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