The European Central Bank will launch new checks on banks’ exposure to private
credit, focusing on dealings with direct lenders after last year’s deficiencies.
Concerns rise as AI-driven disruption hits software firms, heavily financed by
non-bank lending. Private credit accounts for 1–2% of European banks’ assets,
higher at Deutsche Bank, BNP Paribas, and Societe Generale. While loans are
typically secured, analysts warn ongoing headlines may weigh on valuations of
the most exposed banks.
