(5 July 2024 – Global) Global regulators are turning their attention to surging private credit markets.
The Bank of England (BoE) estimates almost all the US$807 billion net increase in lending to British enterprises over the past 15 years is linked to private credit sources. Meanwhile, bank lending to business has barely expanded whatsoever during the same period.
The European Central Bank is even more concerned, pointing to the interaction between private funds and other parts of the financial system.
“Investors and lenders alike also have an interest in learning more about these enormous markets. The FSB should take up the challenge, now that the SEC has failed” commented Chairman of NatWest Group Howard Davies