That's not correctly stated. "Private Credit" is defined as non-bank lending. Banks are doing "public" lending in the sense of being regulated. Private lending is any sort of financial instrument issued outside of those guard rails.

It's generally felt to be risky and volatile, but useful. Basically, it's never illegal just to hand your friend $20 even if the government isn't watching over the process to make sure you don't get scammed. This is the same thing at scale.

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JumpCrisscross 4 hours ago | parent [-]

> That's not correctly stated

It is. (EDIT: It's a mixed bag. OP was correctly calling out a definitional error.)

Banks have loaned $300bn mostly to private-credit firms. Those firms then compete with the banks to do non-bank lending. It's a weird rabbit hole and I'm grumpy after a cancelled flight, but it feels like I'm in the middle of a Matt Levine writeup.

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ajross 4 hours ago | parent [-]

Good grief. I was responding to "Most of what banks do is private credit", which is wrong. Bank lending is not private credit.

	▲	JumpCrisscross 4 hours ago \| parent [-]
		Oh, gotcha. Sorry, got hung up on the first bit.