Treasury Department intensifies scrutiny of private credit markets.

Treasury Department intensifies scrutiny of private credit markets. The U.S. Treasury is launching a series of meetings with insurance regulators to examine the $2 trillion non-bank lending sector amid growing concerns over liquidity, transparency, and lending discipline. Treasury Secretary Scott Bessent plans to act as a convening authority, gathering feedback on fund-level leverage, rating consistency, offshore reinsurance practices, and investment liquidity. While private credit has supported economic growth by filling financing gaps left by stricter bank regulations, officials worry about systemic risk as these assets flow into regulated institutions like pension funds and insurance companies. The consultations reflect heightened vigilance over financial stability without immediate regulatory intervention.