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Private credit is no panacea for Europe’s capital market woes

Loans are moving off banks' balance sheets, but questions remain over what's filling the slack

Do regulators and bond traders have reason to cheer recent lending shifts?
Do regulators and bond traders have reason to cheer recent lending shifts? Photo: Getty Images

David Wighton is a columnist at Financial News

For years, banks have been slowly moving away from what banks traditionally do — lend money and keep those loans on their balance sheets. Corporate borrowers have increasingly turned to other sources of funds in response, including the public bond markets.

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