UK lawmakers have called on the Bank of England (BoE) to accelerate the release of findings from its ongoing probe into private markets, citing mounting systemic risk concerns linked to the rapid expansion of private credit and non, bank financial intermediation. Members of the House of Lords Financial Services Regulation Committee argue that delayed disclosure could weaken market preparedness and regulatory responsiveness.

The BoE launched a data, gathering and stress, testing exercise in late 2024 involving major global asset managers, including private equity and alternative credit firms. While a final report is expected in 2027, peers are urging interim publication of key risk indicators, particularly around opacity, leverage, and interconnectedness between regulated banks and private market actors.

Private credit has emerged as a focal point of concern, with UK private credit exposure reportedly rising from negligible levels in 2013 to nearly £60 billion by 2024. Globally, private credit assets under management are projected to exceed $3 trillion by 2028. Legislators have warned against regulatory complacency, emphasizing that unchecked growth in lightly regulated markets could pose spillover risks to the broader financial system.

Sources:

• The Banker – UK Lawmakers Urge Faster Disclosure of Bank of England Findings
• Parliament UK – Financial Services Regulation Committee Private Markets Report
• Reuters – Bank of England May Need New Powers to Assess Private Markets