08:17 AM EDT, 06/05/2024 (MT Newswires) -- The European Central Bank is reviewing the risk management strategies of the continent's biggest banks in their lending to private equity firms, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The central bank is carrying out "an in-depth assessment" of about a dozen large lenders to ensure they are properly assessing risk factors in loans to companies with already high debt, according to the report.

The review may result in central bank demands that the lenders increase provisions for potential loan losses or hold more capital, the sources told Bloomberg.

The central bank has previously applied additional capital requirements on several lenders including Deutsche Bank ( DB ) and BNP Paribas, the report said.

The ECB did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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