Bank of England Tests Private Credit, Equity Firms Amid Regulatory Concerns

The Bank of England is conducting an exercise to assess the resilience of the private credit and equity industry to financial stress. The System Wide Exploratory Scenario (SWES) will simulate a severe global downturn and examine how banks and non-banks in the sector would respond. The exercise includes major firms such as Blackstone, Apollo, and Ares Management. The BOE aims to understand how risks from private markets could spread to other institutions and the wider economy.