The Reserve Bank of Australia has given a qualified tick of approval to the country’s burgeoning private credit sector, putting a figure on the industry’s size for the first time and arguing it presents few direct links to financial stability – for now.

But the rapid growth of private credit at home and abroad, and its deliberate opaqueness, is rightly raising concerns among local regulators about the level of leverage in the sector, the way private credit assets are valued, and the sheer lack of data on the connections between private credit and other parts of the financial markets.