1:30 pm EDT - 2:30 pm EDT

Past Event

Why is private credit growing so fast? Is it a risk to financial stability?

Thursday, April 04, 2024

1:30 pm - 2:30 pm EDT

The Brookings Institution
Falk Auditorium

1775 Massachusetts Ave NW
Washington, D.C.

Private credit (also known as direct lending) is lending by non-bank financial institutions including private equity firms and alternative asset managers. This alternative to traditional bank loans is most often utilized by small and mid-sized businesses, which are often highly leveraged and generally cannot borrow in corporate bond markets. Although private credit is a small slice of overall business financing, it has been growing very fast, raising concerns among some banks about the competition and among some regulators about risks to financial stability.

On Thursday, April 4, at 1:30 p.m. EDT, the Hutchins Center on Fiscal & Monetary Policy discussed the reasons for the rapid growth of private credit, the implications for banks and borrowers, and whether private credit could pose a financial stability risk, with four experts who brought different perspectives to the issue.

Viewers asked questions of the panelists by emailing [email protected] and on X/Twitter using the hashtag #PrivateCredit.

Registration is required to attend an event in person and guests at Brookings are required to attest to their state of health before attending. Visitors may not enter the building if they are feeling ill for any reason, have any symptoms commonly associated with COVID-19, have recently tested positive for COVID-19 and do not yet meet the criteria to resume normal activities based on current CDC guidance, or have been advised by their healthcare professional or otherwise to not enter any space where some persons may not be vaccinated.