EU Regulators Face U.S. Resistance Over Access To Private Credit Data

European financial regulators are facing resistance from the U.S. Treasury in their efforts to obtain more detailed information on banks’ exposure to the private credit market, according to officials familiar with the discussions.

The issue has emerged as regulators seek greater visibility into a global private credit industry estimated at around USD 2 trillion. European authorities are seeking data on borrowers, valuation methods and guarantees linked to private credit investments to assess potential financial risks. However, U.S. officials have cited confidentiality rules and concerns over additional reporting requirements as reasons for limiting data sharing.

The discussions have taken place through international forums, including the Financial Stability Board. European regulators have warned that if access to data remains limited, they may consider imposing higher capital requirements on banks to cover potential risks.

Officials are concerned that the growing complexity of private credit investments could make financial risks more difficult to identify and manage across the global financial system.