The European Central Bank has identified private credit as a growing source of risk to financial stability, alongside elevated market valuations and loose fiscal policies in some countries, its vice-president Luis de Guindos said on Wednesday.
De Guindos noted that while private credit has expanded rapidly in recent years, it remains less transparent and more weakly regulated than traditional banking, raising concerns among policymakers.
He added that high asset prices in financial markets and fiscal imbalances across certain economies could further amplify vulnerabilities in the system.
The ECB is expected to provide a more detailed assessment of these risks in its upcoming Financial Stability Review scheduled for release in late May
Goodness Anunobi
