The private credit market, after years of rapid expansion, is now facing multiple pressures including corporate defaults, valuation fluctuations in the tech sector, and capital withdrawals. The United States plans to relax bank capital regulations and encourage banks to increase their lending activities to hedge against regulatory arbitrage and risk hidden by the overexpansion of non-bank financial institutions.
Non-bank institutions have surpassed traditional banks in size, with related loans continuously rising. However, concerns have been raised over insufficient transparency and uneven reg