The International Monetary Fund (IMF) has raised concerns over the growth of the private credit market, now valued at $1.7 trillion, and its potential risks to financial stability. In a recent report, the IMF called for a "more intrusive supervisory and regulatory approach" towards private credit, highlighting liquidity risks in times of stress and the sector's significant role as the largest source of financing for private equity. The report also noted the challenges posed by rate hikes on floating rate debt and identified pensions and insurance companies as bearing much of the risk. Despite these concerns, an IMF official stated that private credit is not currently a financial stability risk but could exacerbate a recession.