BoE FPC: High-Risk Credit Markets, Including Some Private Credit, Still Exposed to Tighter Financing Conditions

The FPC's warning lands on private credit specifically, a corner of the market that has grown outside the banking perimeter and therefore sits beyond the buffer regime the Committee just left unchanged. That asymmetry is the signal: bank capital is deemed adequate, while the risk is framed as residing in non-bank credit. For RWA and tokenisation markets, where private credit exposure is increasingly packaged for on-chain distribution, the question of how those holders would behave under tighter financing conditions remains untested.