What They Are Saying: Regulators Affirm Private Credit Does Not Pose Systemic Risk
Washington, D.C. – In an interview today with CNBC’s Invest In America Forum, U.S. Treasury Secretary Scott Bessent affirmed that private credit does not pose a systemic risk.
“So, you know, at Treasury, we monitor all aspects of the capital markets, and private credit is one. I think it’s been an important new product, and we’re keeping track of it,” said Secretary Bessent. “None of our work has shown that there would be a systemic problem.”
Other top financial regulators, policymakers, and industry leaders have also recently reiterated that the private credit industry, which supports American small and mid-sized businesses, does not constitute a “systemic risk” to the U.S. financial system, countering current media narratives.
What They Are Saying:
- “Even Jamie Dimon, who I think a couple months ago said there could be cockroaches with private credit, came out yesterday and said, ‘Let’s just look at the numbers. It’s not big enough to be systemic.’ … None of our work has shown that there would be a systemic problem.” — U.S. Treasury Secretary Scott Bessent, CNBC’s #InvestInAmericaForum, April 15, 2026
- “I think as we have been looking at this area, at least as of now, it is not a systemic risk.” — SEC Chairman Paul Atkins, Financial Times, “Wall Street watchdog says private credit is ‘not a systemic risk’,” April 13, 2026
- “If more of this sector were to become redeemable, that would certainly impact the broader assessment, but today we think that the systemic risk is certainly contained in that sector” — IMF Head of Monetary and Capital Markets Tobias Adrian, MarketWatch, “The private-credit mess won’t lead to a financial crisis like 2008’s, says top IMF official,” April 14, 2026
- “We’re looking for connections to the banking system, and things that might, you know, result in contagion. We don’t see those right now. What we see is a correction … and certainly there’ll be people losing money and things like that, but it doesn’t seem to have the makings of a broader systemic event.” — Federal Reserve Chair Jerome Powell, Yahoo! Finance, “Fed Chair Powell sees no threat of private credit ‘contagion,’ says interest rates are in a ‘good place’,” March 30, 2026
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