US banks hold $300B in loans to private-credit providers
Wall Street is feeling the impact as the US private credit market faces some serious turbulence.
After a couple of big bankruptcies, banks have tightened lending, while private-credit funds have capped withdrawals, limited redemptions and sold assets to return capital.
As of June 2025, US banks had almost $300 billion in loans outstanding to private-credit providers, plus roughly $285 billion lent to private-equity funds and about $340 billion in unused lending commitments.
Major players are making changes to handle the pressure
Major players like JPMorgan Chase, Morgan Stanley, BlackRock, Blackstone, and Blue Owl Capital are all making changes to handle the pressure.
Some are lowering how much their loans are worth or capping how much money investors can pull out at once.
Others are selling off assets or tweaking withdrawal rules to keep things steady while the market sorts itself out.