Credit Agricole Faces Higher Capital Demand for Leveraged Loans

Credit Agricole SA is facing higher capital requirements for its leveraged finance business, a sign the European Central Bank’s scrutiny of such riskier lending is extending further across the industry.

The French bank is still in discussions with the regulator over how much capital it will have to set aside, according to people familiar with the matter. No decision has been made and the final amount is likely to be small, said the people, who asked to remain anonymous as the talks are private.

A spokesman for Credit Agricole declined to comment. A spokesman for the ECB declined to ...