The Shadow Banking System: Private Credit's Growing Pains The $1. 3 trillion private credit market has been growing rapidly since its inception in the aftermath of the 2008 financial crisis.
This expansion is driven by income hungry investors seeking higher returns in a low interest rate environment, but it also raises concerns about lax lending standards and a lack of transparency.
Private credit's growth has created an ecosystem where lenders prioritize securing their own interests over scrutinizing borrower creditworthiness.