08:51 AM EDT, 06/05/2024 (MT Newswires) -- (Updates with European Central Bank response in last paragraph.)

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 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 declined to comment.

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