Regulator Says Eased Bank Rule to Curb Private Credit Demand (1)

The Office of the Comptroller of the Currency said the agency’s efforts to relax post-crisis leveraged-loan rules for banks will help lenders compete with the private credit industry.

“This change will reduce burden, empower banks, and mitigate the demand that has underpinned the growth of private credit,” OCC head Jonathan Gould said in a letter to Senator Elizabeth Warren earlier this month. He added the industry’s growth is in part due to “overregulation of the traditional banking system” and that the agency is conducting a framework review.

The OCC’s acknowledgment that its guidance will help even the playing field comes ...