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Japan: Private Credit Poses No Major Risk Now
10 Apr
Summary
- Japanese finance minister states private credit is not a major domestic issue.
- Global private credit market faces concerns over transparency and AI.
- Japan's banks increased financing to global private credit funds for returns.
As of April 10, 2026, Japan's Finance Minister Satsuki Katayama has indicated that the domestic private credit market is not a significant concern for the country.
While acknowledging the global strains within the $2 trillion private credit industry, particularly noted in the United States due to investor redemptions amid transparency and AI-related worries, Katayama emphasized Japan's limited exposure. She stated that the situation has not escalated to the scale of past financial crises.
The Japanese Financial Services Agency is currently reviewing private credit exposure at major financial institutions. Katayama also noted that the potential risks within this sector could be a subject for discussion at the forthcoming G7 finance ministers' meeting in Washington.
Despite the limited domestic issue, Japanese banks have been actively increasing their financing activities directed towards global private credit funds in recent years, seeking to achieve higher investment returns.
