In today’s “Autumn 2026 risk update”, the ESAs classify private credit as one of the central vulnerabilities of the EU financial system: the sector is growing rapidly, is opaque and is becoming increasingly intertwined with the rest of the financial system. They point to inaccurate credit valuations, high credit risk, unresolved leverage and data gaps.
Private Credit
Private Credit in the Regulatory Spotlight
The market report “Private Markets: Unknown Unknowns” published by the Financial Services Regulation Committee of the House of Lords in January highlights the strong growth of private equity and private credit in recent years. It assesses the implications for the financial system and identifies open questions as well as emerging risks. The report is addressed

