Home » Private credit jumps 45pc in five years and is threatening banks: Citi

Private credit jumps 45pc in five years and is threatening banks: Citi

Private credit jumps 45pc in five years and is threatening banks: Citi

The country’s largest commercial lenders face an increasingly “competitive threat” from private credit, which had significantly outstripped the growth in traditional debt, as risk-averse banks create a “structural” change in the market.

That’s the view of brokers at Citi, who have told clients that the reticence of local banks to lend to indebted companies and for commercial real estate had opened the door for fund managers to lend to businesses at higher rates.

clarification

This article has been updated to clarify that non-bank lending has grown by 45 per cent, not $45 billion, since July 2019.