Revealed: How much Australia’s private credit sector is really worth
The industry’s risks to Australian financial stability are low, the RBA says. But plenty of information gaps remain, and regulators are playing catch up.
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.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
