Journal Article

Banks and Private Credit: Competitors or Partners?


Abstract: Businesses are increasingly securing financing from the nonbank private credit market, which now rivals the size of comparable markets for bank loans or corporate bonds. While private credit may compete with banks for business loans, it also presents opportunities. Banks can lend to private credit funds themselves and generate larger returns than on traditional loans. Moreover, banks and private credit funds are likely lending to different borrowers, suggesting they may be more partners than direct competitors for now.

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Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2025-08-06

Pages: 4