TOKYO (April 9): Japan's financial regulator has been ‌conducting checks on private credit exposure at major financial institutions, a source told Reuters on Thursday, as concerns mount over strains in the $2 trillion global private credit industry. Private credit funds in the United States have ​faced high redemption requests as jittery retail investors bolt for the exits amid concerns over transparency, valuations and artificial intelligence-related disruption. Japan's private credit market remains small due ​to companies' easy access to traditional bank lending, but Japanese banks ​have stepped up financing to global private credit funds in recent years in search ‌of ⁠higher returns. While major Japanese banks' exposure has been limited, global stress in private credit could potentially spill over to Japan if it were to intensify, the source said. FSA Commissioner Yutaka Ito told Reuters last month that the ​watchdog has been ​closely monitoring ⁠Japanese banks' exposure to the sector.

Source: The Edge Markets April 10, 2026 01:01 UTC