Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the threat to financial stability of the increase in private credit lending.

Private markets, including private credit, play a vital role in providing financing to the real economy. They support innovation and diversify funding sources.

As the Bank of England have said, the growth of private markets also brings new vulnerabilities, including from the sectors’ increasing complexity, use of leverage, opacity, and interconnectedness with the wider financial system.

HM Treasury continues to work closely with the regulators to understand these risks. In the 2025 remit letter to the Bank of England’s Financial Policy Committee, the Committee were asked to continue to consider risks in private markets. The Bank of England has since launched its private markets System‑Wide Exploratory Scenario – a world-leading exercise to deepen understanding of vulnerabilities in private markets.