The Reserve Bank of Australia said private credit has grown but remains small and structured and does not currently pose a systemic financial stability risk, in its semiannual Financial Stability Assessment released Thursday. It warned opacity in some private credit funds could expose individual investors to unknown risks. While the report did not name Bathla Group, the RBA said the recent insolvency of a large builder-developer appears to have been driven mainly by company-specific excessive ri

The Reserve Bank of Australia said private credit has grown but remains small and structured and does not currently pose a systemic financial stability risk, in its semiannual Financial Stability Assessment released Thursday. It warned opacity in some private credit funds could expose individual investors to unknown risks. While the report did not name Bathla Group, the RBA said the recent insolvency of a large builder-developer appears to have been driven mainly by company-specific excessive risk-taking; Bathla entered insolvency earlier this month, prompting concerns about potential contagion in the local private credit market.