FSB raises alarm over private credit vulnerabilities
Warning that banks may find it difficult to manage risks comes a day after HSBC disclosed $400mn hit
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UK banks push for easing of capital rules to counter surge in private credit
HSBC and Barclays executives tell House of Lords committee that they are losing ground to US rivals
We must be mindful of the risks of private credit
The sector remains untested in a severe or prolonged economic downturn
Private credit firms pile into consumer debt as risk-taking mounts
Growth raises concerns about underwriting and risk management at fast-expanding groups
If private credit breaks, insurers will fall under the microscope
Rising holdings of the asset class could lead to problems when the next downturn comes
Private credit won’t spark the next financial crisis
A lower leverage ratio and limited links to banks mean that the sector is unlikely to pose a systemic threat
ECB warns banks against excessive use of risk-transfer deals
Securitisation deals to secure capital benefits were up 85% in the first half of this year