The Prudential Regulation Authority has urged banks to stress test their private equity exposure as it found very few lenders carry out comprehensive stress testing exercises, said Rebecca Jackson, executive director of authorisations, regtech and international supervision at the Bank of England.
Speaking at a UK Finance conference today, Jackson said the PRA, which is part of the BoE, had presented the results of a thematic review launched last August of the adequacy of banks’ risk management frameworks in relation to their exposure to private equity.
