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Australia’s regulator warns private credit boom risks financial collapse, urging reforms to prevent crisis.
Australia’s corporate regulator, ASIC, has warned that the private credit sector’s over 500% growth in a decade poses a risk of a financial collapse, likening the danger to a "Minsky moment."
Outgoing chair Joe Longo urged industry improvements, warning mandatory regulations may follow if self-reform fails.
He also criticized uniform reporting rules for small and large firms, advocating for a tiered system.
Meanwhile, public market fundraising has dropped 82% over ten years, and ASIC is ensuring stability after Cboe announced it is selling its Australian exchange operations.
Industry groups support stronger oversight.
El regulador de Australia advierte que el auge del crédito privado corre el riesgo de un colapso financiero, e insta a reformas para prevenir la crisis.