Germany’s BaFin Issues Starkest Warning Yet on Private Credit

Germany’s top financial regulator made the strongest call yet for European authorities to keep a close watch on the booming global private credit market and links to traditional banks and insurers.

“There are risks lurking outside the traditional banking sector,” Mark Branson, president of BaFin, according to the text of a speech in Frankfurt on Wednesday. “There are manifold links between traditional finance and private debt funds. We supervisors, especially the European Central Bank, have to look very closely.”

The ECB oversees the biggest banks in the euro area while national authorities like BaFin handle day to day ...