Bank of England Warns on Private Credit

Bank of England Warns on Private Credit

Bank of England Governor Andrew Bailey has cautioned against dismissing recent private credit failures as isolated incidents, pointing to the sector’s opacity as a potential amplifier of shocks, reminiscent of the 2008 financial crisis. In an interview, Bailey highlighted the risks within private credit – lending to companies by non-banks such as private equity funds and asset managers. His comments follow the collapse of British mortgage provid…