80% of new European private credit funds borrowed from banks in 2023, using subscription lines for lending, raising concerns over bank exposure risks.

80% of new European private credit funds borrowed from banks in 2023, using 'subscription lines' to lend before tapping investors. This interconnectedness raises concerns over wider risks and regulators, including the Bank of England, are examining potential risks from banks' exposure to loosely-regulated credit funds. These funds often help firms that struggle to borrow directly from banks or in bond markets.

March 14, 2024
6 Articles