Barclays has downplayed concerns over its £20bn exposure to the private credit industry, with Chief Executive CS Venkatakrishnan insisting the bank maintains stringent lending controls despite growing scrutiny from global regulators, according to the Guardian.

Venkatakrishnan said Barclays runs a “very risk-controlled shop” and is confident in the strength of its underwriting standards. The remarks come after the lender reported a £110m loss from the collapse of US subprime auto lender Tricolor, which failed amid fraud allegations last month.

The International Monetary Fund and the Bank of England have recently warned that rapid growth in private credit could threaten financial stability, as banks increase their exposure to the largely unregulated sector. Bank of England Governor Andrew Bailey compared recent failures to the early signs of the 2008 financial crisis.

Venkatakrishnan dismissed the comparison, noting that Barclays’ private credit lending is restricted to portfolios managed by “some of the largest, most experienced managers with a strong track record.” He added that the bank had declined multiple opportunities to lend to another troubled borrower, First Brands Group.

While Barclays revealed a £20bn private credit exposure, Venkatakrishnan emphasised that it remains small relative to its £346bn in total loans. “Whatever forms of lending you do, you should do it carefully and with the right controls,” he said.

The comments came as Barclays reported a 7% year-on-year drop in pre-tax profit to £2.08bn for Q3 2025, hit by losses tied to Tricolor and a £235m provision linked to the UK car loan commission scandal. Despite those setbacks, the bank announced £500m in new share buybacks and plans to shift to quarterly dividend payments.

Venkatakrishnan said he remained “pleased with the ongoing momentum” of Barclays’ performance and confirmed upgraded profitability guidance for the year.

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