The European Central Bank will launch new checks on banks’ exposure to private credit, focusing on dealings with direct lenders after last year’s deficiencies. Concerns rise as AI-driven disruption hits software firms, heavily financed by non-bank lending. Private credit accounts for 1–2% of European banks’ assets, higher at Deutsche Bank, BNP Paribas, and Societe Generale. While loans are typically secured, analysts warn ongoing headlines may weigh on valuations of the most exposed banks.