Private Credit Jitters Put European Banking Chiefs on Defense

Nonexistent. Marginal. Not material. Almost zero. That’s how many European bank chiefs reacted when pressed on their exposure to private credit, an industry grappling with concerns over loan quality and an investor exodus.

Executives from almost every major European bank — including Barclays Plc, HSBC Holdings Plc, UniCredit SpA, Deutsche Bank AG and Societe Generale SA — were asked about private credit during a Morgan Stanley conference in London this week. Many were quick to rule out any ties to the industry, or say they were confident about their existing exposure.

Investors have rushed to pull money ...