Private credit funds, by contrast, deploy committed institutional capital from pension funds, sovereign wealth funds, insurers and endowments. Bloomberg notes this sequencing across the US and Europe: private credit funds shoulder early-phase complexity, and banks later refinance with cheaper capital. Private credit benefits because banks:Provide natural refinancing exitsOffer operational facilities that complement private-credit term loansMaintain corporate-banking relationships essential for long-term support. Thailand's financial system should become stronger because two complementary forms of institutional capital -- prudential banking capital and flexible private credit -- operate together, each addressing different stages of the credit lifecycle. We are of the view that as Thailand's private-credit market develops, private credit will increasingly operate alongside banks.

Source: Bangkok Post December 30, 2025 00:21 UTC