Banks, Private Credit, and the Future of Risk

In 2026, the global credit system shifted from bank-led lending to an ecosystem where insurers, private credit funds, and sovereign wealth capital now provide core market plumbing. Panelists will examine how risk is transferred off bank balance sheets through significant risk transfer, asset-based finance, and fund-level leverage, and what that means for credit quality and system resilience. Panelists will assess whether risk is truly diversified, focusing on stress testing outside the banking system—including how insurers, BDCs, and multi-strategy platforms evaluate downside scenarios. The discussion will explore the evolving partnership between banks and private capital and consider where systemic stability ultimately resides when traditional lenders of last resort are constrained. Has credit risk been meaningfully dispersed across the system, or simply relocated into structures that are harder to monitor and stress test? How should regulators and allocators assess systemic vulnerability when leverage, liquidity, and credit risk increasingly sit outside the banking sector?