The committee report says: \u201cThe UK\u2019s position as a global financial centre means it will be the first to experience the opportunities and risks arising from this growth, particularly in US private markets.\u201d<\/p>\n
The Bank of England governor, Andrew Bailey, told the Lords inquiry in October that he had concerns after the collapse of two US auto firms<\/a> that borrowed money from private markets. The cases raised questions about weak lending standards, with Bailey saying there were worrying echoes<\/a> of the sub-prime mortgage crisis that kicked off the financial crisis.<\/p>\n The Bank is about to launch a private credit industry stress test that will map out potential risks linked to the sector\u2019s growth, including whether it could end up amplifying financial and economic shocks<\/p>\n The committee\u2019s chair, Michael Forsyth, who served in John Major\u2019s government, said: \u201cThe Bank of England, the Financial Conduct Authority and the Prudential Regulation Authority are right to be vigilant and to monitor the dramatic growth of private markets and the implications for financial stability.\u201d<\/p>\n A Treasury spokesperson said: \u201cWe have worked together with the regulators to significantly increase our focus on non-banks sectors in recent years and have a robust, flexible framework to protect financial stability.\u201d They added that the Treasury would respond to the report in due course.<\/p>\n Quick GuideContact Guardian Business about this storyShow The best public interest journalism relies on first-hand accounts from people in the know.<\/p>\n If you have something to share on this subject you can contact the Business team confidentially using the following methods.<\/p>\n Secure Messaging in the Guardian app<\/strong><\/p>\n The Guardian app has a tool to send tips about stories. Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs. This prevents an observer from knowing that you are communicating with us at all, let alone what is being said.<\/p>\n If you don’t already have the Guardian app, download it (iOS<\/a>\/Android<\/a>) and go to the menu. Scroll down and click on Secure Messaging<\/b>. When asked who you wish to contact please select the Business (UK & Global)<\/b> team.<\/p>\n SecureDrop, instant messengers, email, telephone and post<\/strong><\/p>\n If you can safely use the tor network without being observed or monitored you can send messages and documents to the Guardian via our SecureDrop platform<\/a>.<\/p>\n![\"\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2026\/01\/1767973033_719_4000.jpg\")
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