Bank of Canada Voices Concern Over Private Credit Rise

The Bank of Canada is concerned about the rise of private credit in the country's economy. According to recent comments, this trend is being seen as a potential risk due to looser underwriting standards that have developed during a period of abundant capital.

Bruce Flatt, CEO of Brookfield Corp., views the current turbulence in private credit as a 'healthy adjustment' and does not consider it a systemic problem. However, he notes that areas attracting concern represent only a small part of the broader credit market.