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Fed’s Bowman warns on shift to $1.4T private credit market
Key takeaways
- The bank share of corporate lending decreased to 29% in 2025 from 48% in 2015, Bowman said on May 8 at the Hoover Institution’s annual Monetary Policy Conference at Stanford University.
- The private credit market is about $1.4 trillion, about the size of the high-yield bond and leveraged loan markets, but accounts for about 10% of total US corporate borrowing.
- Bowman’s words about the private credit market are a direct acknowledgment by a sitting Fed governor of post-2008 bank capital rules, which were designed to safeguard the banking system after the financial crisis.
Fed’s Bowman warns on shift to $1.4T private credit market Priya Batchu Mon, May 11, 2026 at 2:13 AM GMT+7 3 min read Federal Reserve Vice Chair for Supervision Michelle Bowman said the central bank’s own capital rules sent corporate lending from regulated banks into the $1.4 trillion private credit market, flagging a regulatory shift designed to bring some of that activity back.
The bank share of corporate lending decreased to 29% in 2025 from 48% in 2015, Bowman said on May 8 at the Hoover Institution’s annual Monetary Policy Conference at Stanford University.
The private credit market is about $1.4 trillion, about the size of the high-yield bond and leveraged loan markets, but accounts for about 10% of total US corporate borrowing.
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