On 6 May 2026, the Financial Stability Board (FSB) issued a report on vulnerabilities in private credit.

The report forms part of the FSB’s work programme to enhance resilience in non-bank financial intermediation.

Private credit activity has grown rapidly, to an estimated $1.5 to 2.0 trillion in assets at end-2024 and is heavily concentrated in a few jurisdictions. The private credit ecosystem includes a variety of participants such asset managers, insurers, pension funds, and banks, with asset managers acting as general partners.

The report provides an overview of the private credit ecosystem, identifying potential vulnerabilities related to interlinkages with banks. It also highlights the challenges in collecting and analysing data for effective monitoring of the sector. The report also discusses other potential vulnerabilities, such as interconnectedness with insurers and private equity firms, cross-border interlinkages, leverage, liquidity mismatches, and concentration.

Looking ahead, the FSB believes that there are four main areas where further work will be considered:

  • Assessing vulnerabilities related to interlinkages between a range of nonbanks within the private finance ecosystem, as well as potential vulnerabilities related to liquidity mismatches in private credit funds.
  • Mapping and defining the components of the ecosystem.
  • Considering facilitating supervisory discussions to enhance authorities’ ability to assess and supervise vulnerabilities and risks.
  • Exploring addressing data challenges to improve authorities’ ability to monitor and address vulnerabilities.

The FSB encourages authorities to:

  • Address data challenges, including those related to the lack of granular fund and loan-level data and the absence of harmonised global definitions.
  • Deepen analysis of interlinkages of private credit with private equity and insurers and of liquidity mismatches in private credit funds.
  • Share supervisory approaches on risk management and governance for banks and nonbanks active in private credit, including aggregation of exposures, valuation practices, and the use of private ratings.