Lords Report Slams UK Treasury for Apathy to Private Credit Risk

Lords criticise UK Treasury for inaction on private credit risks

The UK’s House of Lords has sharply criticised the Treasury for its “limited grasp” of risks in private capital markets and called on the Bank of England to accelerate stress testing of the sector, according to a report by Bloomberg. In its report, the Financial Services Regulation Committee highlighted the rapid growth and interconnectedness of private markets with banks and insurers as potential concerns for financial stability. While the inqu…

Lords Report Slams UK Treasury for Apathy to Private Credit Risk

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Peers warn 'passive' Treasury not aware of private credit risks

The Treasury is being too passive about the risks posed to the economy by the rapid growth of private credit in the UK, according to an influential group of peers who accused ministers of “handing out the donkey work” of overseeing the sector to regulators. In fresh report examining the systemic risk posed by private markets, members of the Financial Services Regulation Committee said they were “concerned by what seemed like passivity” among Tre…