Leveraged Finance More Than Doubles in Europe Despite ECB Probe

Investment banks in Europe have been handing out risky credit at a rapid clip this year despite efforts by the European Central Bank to rein in the practice.

The total volume of leveraged finance in the region hit €204 billion ($226 billion) through August, more than twice the amount in the same period last year, data compiled by Bloomberg shows. That’s the second-highest level in more than a decade.

The numbers underscore the continued popularity of leveraged lending, the lucrative but risky business of extending credit to heavily indebted companies. The ECB has been conducting a granular assessment of those ...