The European Central Bank expands the scope of private credit correlation surveys, with the number of banks covered doubling.

Amidst a decline in investor confidence in the private credit industry, the European Central Bank has doubled the number of banks covered by a survey related to the relationship between banks and private credit. According to sources familiar with the matter, the ECB requested information on their exposures from over 20 banks this year, up from the previous assessment of a dozen or so banks. The sources stated that banks with substantial connections to private credit will have to report relevant details annually. As the communication was not made public, the sources requested anonymity. A spokesperson for the European Central Bank declined to comment. Despite the ECB's supervisory actions building on similar work over the past two years, there has been increased attention on the industry in recent months as some funds have been forced to limit redemptions. The central bank is concerned that traditional banks may have deficiencies in identifying their exposures to private credit, even though the business is smaller in the eurozone compared to the United States.