Financial Stability Board report reveals tech, healthcare and services sectors as the biggest borrowers
The private credit industry’s role in fuelling the AI boom could backfire, with a sharp correction leading to “sizeable” losses, the Financial Stability Board has warned.
A new report into private credit by the global watchdog, which monitors financial authorities including central banks in 24 countries, found that the healthcare, services, and tech sectors have become the biggest borrowers of private credit.
That includes AI firms, which have increasingly turned to private lenders to fund datacentres and other infrastructure. The AI industry accounted for more than a third of private credit deals in 2025, up from 17% over the previous five years. “This focus on specific sectors may leave private credit funds exposed to idiosyncratic risks … [and] increase exposure to region or industry-specific shocks,” the report warned.
On AI loans, the FSB warned that a “sharp correction in asset valuations, which have increased rapidly, could lead to sizeable credit losses to private credit investors”.
