Japan Watchdog Reviews Bank Private Credit Exposure

Japan's regulator is checking bank exposure to private credit amid global market strains. Officials are monitoring risks as the sector faces more scrutiny.

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The financial regulator in Japan has launched an investigation into the private credit exposure of major financial institutions. This development follows growing international concern regarding the $2 trillion global private credit market and its potential for systemic strain. The Financial Services Agency (FSA) is currently reviewing the lending and investment connections between domestic banks and private credit funds, a move that was initially reported by Kyodo News.

FSA Commissioner Yutaka Ito during a Reuters interview in Tokyo, Japan, in March 2026. REUTERS/Kim Kyung-Hoon/File Photo
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