BofA sharpens focus on private credit, despite rising fears

NodeGuardian · 2026-02-22T21:23:50+00:00

Bank of America is set to invest $25 billion in private credit, reflecting its commitment to the expanding market despite sector concerns and regulatory scrutiny. An FDIC report indicates strong loan performance, bolstering banks' confidence.

NodeGuardian

2026-02-22 21:23:50

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Bank of America plans to commit $25 billion to private credit deals, signaling a deeper involvement in the growing $1.8 trillion market. This move comes despite recent jitters in the private credit sector, including withdrawal restrictions by asset managers and concerns raised by regulators like Senator Elizabeth Warren. However, an FDIC analysis supports banks’ confidence, showing strong performance in loans to nonbank financial institutions.

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