Arabic version: ASIC تحذّر من مخاطر الائتمان الخاص
According to ABC News, Australia’s corporate regulator is concerned about the growing risks private credit may pose to investors, including people exposed through superannuation. ASIC commissioner Simone Constant said the market had reached a size and breadth not previously seen and had not been tested in a downturn.
Private credit is lending outside the banking sector. In Australia, private credit loans are worth about $250 billion, up from roughly $35 billion a decade ago. More than half of private lending is concentrated in property development and construction, an area ASIC is monitoring while seeking more information about loans.
Ms Constant said an overvalued Australian property market and lending practices emerging at scale could create gaps, liquidity problems, lagging data and default risks. ASIC is concerned that a property-market crash could trigger a private-credit financial shock, leaving private investors and superannuation members bearing losses. “What could go wrong? Investors could lose money,” she said.
Global regulators are also examining the opaque sector. Reserve Bank documents obtained under freedom-of-information laws show it has been making inquiries into financial and economic risks for Australia. The Bank of England launched an exploratory scenario exercise in December, with results expected in early 2027.
Concerns have intensified following pressure in US private credit. Blue Owl restricted investor withdrawals this year as software investments deteriorated, while US auto lender Tricolor Holdings and UK mortgage lender Market Financial Solutions have collapsed. ASIC is encouraging Australians to understand whether they have exposure to private credit, particularly through superannuation.
