Private credit can help fill Asia's growing financing gap

Regulators should welcome alternative for SMEs that can't turn to banks or bonds

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20240216 thai baht notes

Tighter bank lending policies and higher interest rates are key drivers of the growth of private credit in Asia. © Reuters

Ee Beng Soh is a Singapore-based senior adviser to investment bank Houlihan Lokey.

Whenever a nascent financial market posts stellar growth, warnings of potential bubbles or unforeseen risks inevitably follow. And so it is with private credit, an alternative source of financing for companies.

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