Source: International Business Times
The FSB estimated banks currently have about $220 billion in drawn and undrawn credit exposure to the sector. Pixabay A major global financial watchdog is calling for stronger regulatory scrutiny of the rapidly expanding private credit sector, warning that its growing size and increasing links to traditional banking and investment systems are raising vulnerabilities across global markets. The Financial Stability Board (FSB), which includes central bankers, finance ministers and regulators from G20 economies, released a report Wednesday highlighting risks tied to the nearly $2 trillion private credit industry, pointing to limited transparency in lending structures and uneven valuation practices as key concerns.
