Barclays (BCS) is facing scrutiny from UK regulators over its use of significant risk transfer, or SRT, transactions, Bloomberg reported Tuesday, citing unnamed sources.

The review, known as a Section 166 probe, has been requested by the Prudential Regulation Authority, the supervisory arm of the Bank of England, according to the publication.

The report says the bank has commissioned an independent review of its practices.

The regulator is seeking a closer examination of corporate governance and internal oversight tied to Barclays' SRT activity, it added. The bank is one of the largest issuers of such transactions, which allow lenders to transfer portions of loan risk to investors and free up regulatory capital for lending, acquisitions or shareholder returns, according to Bloomberg.

Barclays did not immediately respond to MT Newswires' request for comment.

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