Bank of England Governor: The debate on private credit risks reminiscent of the subprime crisis in 2008.

The Governor of the Bank of England, Bailey, warned on Wednesday that recent defaults in the private lending sector should not be viewed as isolated incidents, and the opacity of the industry could amplify the impact, reminiscent of the 2008 financial crisis. Bailey made these remarks in a media interview, the strongest warning he has issued so far on the risks of private lending. Private lending refers to non-bank institutions such as private equity funds and asset management companies lending to businesses. In February of this year, the UK mortgage lender Market Financial Solutions collapsed. Prior to this, American automotive parts supplier First Brands and car dealer Tricolor also went bankrupt last year. All three cases were accused of fraud or mismanagement.