Key Takeaways
- • Deutsche Bank faces the highest risk in a private credit downturn scenario among UK and European lenders, with potential losses equal to 13% of profits, according to a Bloomberg Intelligence survey.
- • Four institutions, Deutsche Bank, Barclays, BNP Paribas and HSBC, account for almost two-thirds of the €137bn private credit exposure across 29 major UK and European banks.
- • The analysis indicates wider sectoral risks from a private credit downturn remain limited, even as individual lenders show concentrated exposure.
Summary
Deutsche Bank, Barclays and BNP Paribas are among the most exposed of the UK and Europe's leading lenders to a downturn in the private credit market, according to new analysis reported by TheBanker.com. The findings are drawn from a Bloomberg Intelligence survey of 29 major UK and European banks.
The survey identifies four institutions, Deutsche Bank, Barclays, BNP Paribas and HSBC, as accounting for almost two-thirds of the €137bn in private credit exposure across the two regions. Deutsche Bank shows the highest sensitivity in a downturn scenario, with potential losses reaching 13% of its profits.
Despite these concentrated exposures, the analysis suggests that broader sectoral risks remain limited. The article's focus is on the distribution of exposure among the largest lenders rather than on systemic stress across the banking sector. Further detail on the scenario assumptions and loss methodology is available only to subscribers of the publication.
The survey identifies four institutions, Deutsche Bank, Barclays, BNP Paribas and HSBC, as accounting for almost two-thirds of the €137bn in private credit exposure across the two regions. Deutsche Bank shows the highest sensitivity in a downturn scenario, with potential losses reaching 13% of its profits.
Despite these concentrated exposures, the analysis suggests that broader sectoral risks remain limited. The article's focus is on the distribution of exposure among the largest lenders rather than on systemic stress across the banking sector. Further detail on the scenario assumptions and loss methodology is available only to subscribers of the publication.
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