BoE flags challenges of evaluating private credit risks to financial stability

During a speech today (29 January), Foulger said that assessing the extent of the risks, or in which scenarios they might crystallise, is "easier said than done" given "significant challenges" with the procurement of reliable data to monitor risks in the sector. According to Foulger, the shift in the risk environment, including greater geopolitical risks, more subdued economic growth and tighter financing conditions, will pose specific challenges to private credit markets.  This is both in terms of the way risks are managed and because the underlying borrowers and specific business mo...