Banks’ exposure to private credit is limited, FSC saysBy Crystal Hsu / Staff reporterGlobal redemption pressures in the private credit market have forced several major funds to restrict withdrawals or suspend redemptions, but Taiwan’s exposure remains limited and manageable, the regulator said. The global private credit stress was triggered by Blue Owl Capital, which halted redemptions in one of its products and moved to a capital-return mechanism. At least seven international private credit funds have faced notable liquidity pressures, signaling that the stress is no longer confined to isolated cases. The stress in the global private credit market emerged mainly from structural weaknesses that became visible under prolonged high interest rates and tighter liquidity conditions. Most private credit loans carry floating rates, increasing borrowers’ interest costs and straining corporate cash flows, which elevates default risks.

Source: Taipei Times April 03, 2026 17:12 UTC