BNP Paribas Risks Higher Capital Charges on Leveraged Loans (1)

BNP Paribas SA risks being the next big lender to be slapped with higher capital requirements because of its leveraged finance business, after rival Deutsche Bank AG was told by regulators to increase its buffers.

If BNP doesn’t cut back on risk, the European Central Bank is likely to demand it set aside more equity to cushion against potential credit losses, people with knowledge of the matter said. The French bank is near the top of a list compiled by the ECB showing which lenders are most active in the leveraged lending business, the people said, asking not to be ...