Barclays discloses £66 billion exposure to non-bank institutions linked to private credit markets, as industry experts warn of mounting risks and regulatory scrutiny amid rapid growth in the sector.
Barclays is beginning to put firmer numbers on a part of its business that has drawn growing scrutiny from investors and regulators: the lender said it has £66 billion of structured financing exposure to non-bank institutions, most of it in securitised products backed by what it describes as higher-quality counterparties and regular collateral reporting.
The disclosure gives a clearer picture of how a major European bank is linked to the expanding private credit market, even though the exposure is not the same as direct lending to companies. Barclays also said it had about £15 billion tied to private credit funds at the end of the first quarter, alongside roughly £1 billion connected to business development companies, the structures often used to pool direct loans.
Chief executive CS Venkatakrishnan has sought to reassure investors that the bank’s controls are strong. In comments reported by The Guardian in October 2025, he said Barclays had robust safeguards in place despite warnings from the International Monetary Fund and the Bank of England about the sector. The same report said the bank took a £110 million loss after the collapse of Tricolor, a US sub-prime auto lender, underscoring the risks that can surface when private credit financing goes wrong.
Barclays has also said it is reducing activity in parts of its asset-based lending business after the failures of Market Financial Solutions and Tricolor, with the latter contributing to more than £200 million of impairment charges in its latest results. That caution reflects a broader shift across the industry as banks, regulators and investors examine how far traditional lenders are exposed to non-bank credit markets.
The timing matters. McKinsey said in a 2024 report that private credit had grown to nearly $2 trillion by the end of 2023, roughly ten times its size in 2009, as the asset class moved deeper into corporate capital structures and attracted banks, asset managers and insurers. Bloomberg reported in 2024 that Moody’s found banks had increased lending to the largest private credit groups, with average annual lending across 32 banks rising 18% between 2021 and 2023.
That expansion has helped make transparency more important. An S&P Global report in April 2026 said banks’ links to private credit are becoming more visible through lending to non-bank financial institutions, particularly after a series of recent credit events. The same report said European lenders face a more cautious backdrop than their US peers as they weigh risks, valuations and underwriting standards.
For Barclays, the latest disclosures may help answer some of the questions surrounding its balance sheet, but they also confirm that the bank is more deeply embedded in private credit than many investors had appreciated. Even if management continues to emphasise collateral quality and monitoring, the pressure on lenders to explain these exposures is unlikely to fade soon.
- https://www.gurufocus.com/news/8823499/barclays-publishes-66-billion-nonbank-exposure-amid-private-credit-scrutiny – Please view link – unable to able to access data
- https://www.theguardian.com/business/2025/oct/22/barclays-plays-down-20bn-exposure-to-private-credit-industry – In October 2025, Barclays reported a £20 billion exposure to the private credit industry. CEO CS Venkatakrishnan stated that the bank has robust controls in place to manage this exposure, despite concerns from the International Monetary Fund and the Bank of England regarding the private credit sector’s stability. The bank also faced a £110 million loss due to the collapse of US sub-prime auto lender Tricolor, highlighting potential risks in the private credit market. Venkatakrishnan emphasised Barclays’ commitment to prudent lending standards and risk management.
- https://www.mckinsey.com/industries/private-capital/our-insights/the-next-era-of-private-credit – McKinsey’s 2024 report highlights the rapid growth of private credit, noting that the asset class reached nearly $2 trillion by the end of 2023, approximately ten times its size in 2009. The report discusses the evolution of private credit, its increasing prominence in corporate capital structures, and the emerging ecosystem involving asset managers, banks, and insurers. It also addresses the challenges and risks associated with this growth, including the need for effective risk management and regulatory oversight.
- https://www.spglobal.com/market-intelligence/en/news-insights/research/2026/04/banks-and-the-not-so-hidden-exposure-to-private-credit – An April 2026 S&P Global article examines the growing exposure of banks to private credit through lending to nonbank financial institutions. The piece discusses recent credit events tied to private credit and the implications for the banking sector. It also highlights the importance of transparency and risk management as banks’ connections to private credit become more visible. The article features insights from industry experts on the potential risks and the need for careful monitoring of these exposures.
- https://www.spglobal.com/market-intelligence/en/news-insights/research/2026/04/private-credit-in-focus-cross-industry-signals – S&P Global’s April 2026 report focuses on the evolving role of private credit across various industries. It highlights the resilience of private credit demand in the US despite lower interest rates and the cautious outlook in Europe due to global risks. The report also discusses sector-specific dynamics, such as utilities increasingly exploring private credit for large-scale investments and the challenges faced by software and office property sectors. Additionally, it addresses the growing attention from banks and regulators towards private credit exposures and the need for enhanced transparency.
- https://www.bloomberg.com/news/articles/2024-10-15/banks-exposure-to-private-credit-is-rising-moody-s-says – Bloomberg’s October 2024 article reports that banks are increasing their exposure to private credit by funding the $1.7 trillion sector’s largest lenders. Moody’s found that average annual lending across 32 banks grew 18% between 2021 and 2023, aligning with a 19% increase in capital raising from private credit funds over the same period. The article discusses the implications of this trend for the banking sector and the potential risks associated with higher exposure to private credit markets.
- https://www.spglobal.com/market-intelligence/en/news-insights/articles/2024/10/private-debt-correlation-to-private-company-bankruptcy-fades-83550700 – An October 2024 S&P Global article examines the correlation between private debt and private company bankruptcies. It notes a decline in the share of private companies with recent private credit loans filing for bankruptcy, from 4.3% in 2023 to 2.3% through September 2024. The article discusses potential reasons for this trend, including the flexible approach of private credit lenders to distressed situations, and highlights the importance of understanding the dynamics between private debt and corporate financial health.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on April 28, 2026, and reports on Barclays’ recent disclosures regarding its exposure to non-bank institutions. The information aligns with recent reports from reputable sources such as The Guardian and MarketScreener, indicating that the content is current and not recycled. However, the article’s reliance on a single source, GuruFocus, which is not a major news organisation, raises concerns about source reliability. Additionally, the article includes a direct quote from The Guardian, suggesting that the content may be summarising or aggregating information from other sources. This lack of originality and potential reliance on a single source reduces the freshness score.
Quotes check
Score:
6
Notes:
The article includes a direct quote from The Guardian, indicating that the content may be summarising or aggregating information from other sources. However, the GuruFocus article does not provide direct quotes from Barclays’ CEO, CS Venkatakrishnan, or other Barclays representatives, making it difficult to verify the accuracy of the statements attributed to them. The lack of direct quotes from primary sources raises concerns about the verifiability of the information presented.
Source reliability
Score:
4
Notes:
The article originates from GuruFocus, a financial news and analysis website. GuruFocus is not a major news organisation and may not have the same editorial standards as more established outlets. The article also includes a direct quote from The Guardian, suggesting that the content may be summarising or aggregating information from other sources. This lack of originality and potential reliance on a single source raises concerns about the reliability of the information presented.
Plausibility check
Score:
7
Notes:
The article reports on Barclays’ recent disclosures regarding its exposure to non-bank institutions, which aligns with recent reports from reputable sources such as The Guardian and MarketScreener. However, the article’s reliance on a single source, GuruFocus, which is not a major news organisation, raises concerns about the accuracy and completeness of the information presented. The lack of direct quotes from primary sources makes it difficult to verify the accuracy of the statements attributed to Barclays’ CEO, CS Venkatakrishnan.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on Barclays’ recent disclosures regarding its exposure to non-bank institutions, aligning with recent reports from reputable sources. However, the article originates from GuruFocus, a financial news and analysis website that is not a major news organisation, raising concerns about source reliability. The article includes a direct quote from The Guardian, suggesting that the content may be summarising or aggregating information from other sources, which raises concerns about originality and potential reliance on a single source. The lack of direct quotes from primary sources makes it difficult to verify the accuracy of the statements attributed to Barclays’ CEO, CS Venkatakrishnan. Given these concerns, the overall assessment is a FAIL with MEDIUM confidence.