00:00It's Benzinga bringing Wall Street to Main Street
00:02Federal Reserve Bank of New York staff have been meeting with major lenders since the
00:06spring to examine private credit risk on bank balance sheets.
00:09According to Benzinga, the review followed J.P. Morgan's March markdowns on loans in
00:13private credit portfolios, largely tied to software businesses facing artificial intelligence
00:17pressure.
00:18Bank lending to non-bank financial firms has risen from about $300 billion in 2016 to more
00:24than $1.5 trillion and now represents roughly 11 percent of total bank loans.
00:29Regulators in Europe are also increasing scrutiny.
00:32The SEC recently warned private credit managers and auditors about valuation practices as registered
00:38funds' private credit investments reached $270 billion at the end of 2025.
00:43For all things money, visit Benzinga.com
