
Bank of Canada Warns of Risks from Rising Private Credit
The Bank of Canada is monitoring the growth of private credit, where businesses borrow from non-bank lenders like asset managers and insurers. This model, which has Canadian investors and banks exposed to CAD 500 billion in loans, has been linked to high-profile bankruptcies globally. While the share of Canadian businesses using private credit remains limited, the Bank of Canada flags concerns about its lack of regulation and potential contagion effects in a market downturn.6 sourcesSee all sources















