# #36 Bank of England: Private Credit Has Echoes of Great Financial Crisis

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Text version: https://stenobird.com/podcast/big-boss-interview-316999/36-bank-of-england-private-credit-has-echoes-of-great-financial-crisis.md
Podcast: [Big Boss Interview](https://stenobird.com/podcast/big-boss-interview-316999)
Published: 2026-04-27T23:01:00+00:00
Episode link: http://www.bbc.co.uk/programmes/p0ngx3t0
Audio file: http://open.live.bbc.co.uk/mediaselector/6/redir/version/2.0/mediaset/audio-nondrm-download-rss-low/proto/http/vpid/p0ngx0k7.mp3
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JSON: https://stenobird.com/v1/public/podcasts/big-boss-interview-316999/episodes/36-bank-of-england-private-credit-has-echoes-of-great-financial-crisis
Duration seconds: 1425

## Resource

Sarah Breeden, Deputy Governor of the Bank of England for financial stability, joins Big Boss Interview to discuss risks in the global financial system, the rapid growth of private credit, and whether markets are prepared for the next economic shock. She tells BBC Business Editor, Simon Jack the private credit market has grown to around $2.5 trillion in less than two decades, and says the BoE is watching the sector closely. She warns it has “never been tested at this scale” and that aspects of the market carry echoes of the period leading up to the 2008 financial crisis — including rising leverage, complex interconnections between funds, insurers, pension schemes and banks, and limited transparency compared to traditional lending. There are already signs of strain. Investors have begun pulling money out of some funds, while others have been gated or marked down. Breeden warns this could lead to what she describes as a “private credit crunch”, where companies reliant on this form of financing may struggle to refinance their debt. While distinct from a banking-led crisis, she says the consequences for the real economy could still be significant. At the same time, she highlights a growing disconnect between financial markets and underlying economic risks. Asset prices in some areas remain close to record highs despite geopolitical instability, persistent inflationary pressures and vulnerabilities within parts of the financial system. Breeden says the Bank expects an adjustment — meaning prices will fall — but stresses the key question is not whether this happens, but when and how sharply. A further concern is the reduced capacity of governments to respond to future crises. Sovereign debt levels are at historic highs, limiting the scope for large-scale fiscal intervention…

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## Transcript

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