Some banks are unable to quantify their exposure to private equity, the Bank of England has found, in the latest warning that the $8tn industry could threaten the wider financial system. BoE regulator Rebecca Jackson said on Tuesday that lenders should routinely stress test their exposure, but “hardly any banks do it well”.

Regulators need to shine a light on the $8 trillion global private equity sector, as opaque leverage makes it hard to get a picture of the risks it poses to financial stability, jobs and growth, a Bank of England official said on Monday.

Bank of England executive says creeping sense of complacency and lack of data is putting lenders at risk