Federal Reserve officials have requested detailed disclosures from major U.S. banks about their holdings in private‑credit funds, following a sharp rise in redemption requests and a spike in troubled loans within the sector.

The move comes after investors pulled back from private‑credit vehicles, tightening liquidity and raising concerns about potential contagion in the banking system. Banks must now clarify how much capital they hold in these riskier assets.

This scrutiny signals regulators’ focus on the link between banks’ balance sheets and private‑credit markets. Investors will watch how exposure levels shift, as changes could impact funding costs and risk‑taking appetite across the banking industry.

Regulators’ demand for transparency aims to safeguard financial stability by ensuring banks can withstand further market stress.