JPMorgan CEO Jamie Dimon Says Private Credit Does Not Pose Systemic Risk

Private credit involves direct corporate lending by asset managers and other nonbank institutions. The market expanded rapidly after the financial crisis as bank regulation tightened and is now estimated at about $1.7 trillion to $2 trillion. Its limited transparency and liquidity have made the potential transmission of rising corporate defaults to banks and investors a focus of financial-stability concerns.

In his annual shareholder letter published on April 7, 2025, JPMorgan Chase Chief Executive Jamie Dimon said the market was not yet large enough to bring down the financial system, but that did not make it risk-free. He warned that leveraged-loan losses could exceed expectations after credit standards loosened and that about 1,000 participating institutions had never experienced a recession. JPMorgan will remain active in the market, Dimon said, while also noting that AI is reshaping the industry.