ECB identifies private credit as financial stability risk

ECB Vice President Luis de Guindos says private credit poses a risk to financial stability. The bank will release its full stability review in late May.

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The European Central Bank has identified private credit as a significant source of risk to financial stability, according to Vice-President Luis de Guindos. In remarks delivered on Wednesday, de Guindos highlighted that the expansion of private lending, coupled with high market valuations and loose fiscal policies in several nations, presents a notable challenge to the current economic environment.

European Central Bank Vice-President Luis de Guindos attends a press briefing in Florence, Italy, following a monthly monetary policy meeting on October 30, 2025. REUTERS/Remo Casilli/File Photo
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