The Financial Stability Board (FSB) has issued a Report on Vulnerabilities in Private Credit (Report) that highlights the growth and sophistication of the private credit industry while also warning against certain risks it poses to the global financial markets. “Private credit remains untested to a prolonged economic downturn and so warrants close attention,” cautioned the FSB. The Report focuses on significant potential vulnerabilities in private credit, including interlinkages between banks and private credit; credit quality, valuations and other potential borrower-related concerns; additional vulnerabilities including other market interlinkages, leverage, liquidity mismatches and industry concentration; and examples of how high-profile borrower defaults illustrate certain of the potential risks and vulnerabilities spelled out in the Report. This article parses relevant takeaways from the Report. See “Evolution of the Private Credit Industry and Ongoing Challenges” (Feb. 19, 2026).