Japan's Finance Minister Satsuki Katayama stated Friday that domestic private credit poses limited risk, though authorities are intensely monitoring the rapidly expanding global market valued at roughly two trillion dollars.

Japan's Finance Minister Satsuki Katayama stated Friday that domestic private credit poses limited risk, though authorities are intensely monitoring the rapidly expanding global market valued at roughly two trillion dollars. Japan's Financial Services Agency is reviewing major financial institutions' exposure to private credit amid broader international concerns. While Japanese companies maintain strong access to traditional bank financing, limiting domestic systemic risk, Japanese banks are increasingly financing global private credit funds to boost returns in low-yield environments. This cross-border exposure has attracted regulatory scrutiny as global private credit faces mounting pressures, particularly in the United States where funds experience rising redemption requests and investor concerns about transparency and valuation practices.