Financial Stability Reports Explore Private Credit
article by Dr. W. Scott Frame
Dr. W. Scott Frame’s latest blog discusses the significant growth of private credit, which now holds over $1.7 trillion in assets under management. This expansion has drawn attention from the Federal Reserve (2023) and International Monetary Fund (2024), given their roles in overseeing financial stability. After outlining the private credit market, the blog summarizes key analyses and conclusions from recent financial stability reports by these agencies, as well as the initial regulatory steps being taken to address potential concerns.