This podcast episode explores the rapidly growing private credit market, valued between $2.5 and $3 trillion, and how it is transforming the banking industry. Expert Huw van Steenis discusses the regulatory environment that has inadvertently fueled this growth, resulting in complex collaborations between banks and private credit firms. The conversation highlights the importance of insurance capital, the concerns surrounding systemic risk, and the role of technology—especially AI—in enhancing bank profitability. Looking ahead, the episode points to asset-backed lending and commercial real estate as key areas for private credit's expansion, while also addressing the potential risks within this dynamic financial landscape.
