Germany’s Deutsche Bank has reported that it holds about $30 bn in exposure to the private credit market, highlighting potential risks associated with the fast-growing asset class.
The bank revealed in its latest annual report that its private credit portfolio reached about €25.9 bn in 2025, compared with €24.5 bn the previous year. While the exposure represents only a small portion of the bank’s total loan book, it remains one of the larger private credit positions among major global banks.
Private credit typically refers to loans provided by non-bank lenders, often to mid-sized companies that may find it difficult to access traditional bank financing. The sector has expanded rapidly in recent years and is estimated to be worth around $2 tn globally.
In its report, Deutsche Bank highlighted several risks linked to the sector. These include limited transparency and concerns around credit quality. Failures involving some sub-prime lenders in the United States have also increased scrutiny over underwriting standards and potential fraud risks.
Despite these concerns, the bank said it maintains conservative lending practices within its private credit portfolio. However, it acknowledged that indirect risks could still arise through interconnected portfolios and counterparties across the wider financial system.
The disclosure comes as investor attention on private credit has grown significantly. Some funds have faced redemption pressure recently, while several banks have begun reassessing lending relationships with private credit firms amid concerns over loan valuations and borrower stability.
Private credit has become an increasingly important source of financing for companies as traditional banks reduced certain types of lending following stricter capital regulations introduced after the global financial crisis.
Regulators have also cautioned that the sector’s rapid growth and limited disclosure could create broader financial risks if market conditions weaken.
Deutsche Bank said it continues to closely monitor developments in the private credit market while maintaining risk controls on its exposure.
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