Sector Regulation Sector Regulation

Eurozone banks warned to take action on ‘excessive risk taking’ in leveraged loan market

By Fiona Maxwell
  • 30 Mar 2022 08:01
  • 30 Mar 2022 08:01
Eurozone banks have been warned to act on the all-time-high issuance of leveraged loans or face increased capital requirements.

The European Central Bank told bank chief executives in a letter published today that there is “excessive risk taking” coupled with “inadequate risk management” in leveraged transactions, adding that it will take

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