Deutsche Bank has disclosed €26bn in private credit exposure, equivalent to about $30bn, in its latest annual report. The German lender's disclosure comes as the roughly $1.8trn private credit market faces increased scrutiny from investors. Recent corporate failures and concerns about underwriting standards have heightened attention on the sector.

Despite these developments, Deutsche Bank stated it faces no significant risks from non-bank financial institutions. However, the bank acknowledged that indirect credit risks could emerge through interconnected portfolios and counterparties. The report noted that failures of U.S. sub-prime lenders have increased investor focus on risks associated with private credit, raising wider concerns about underwriting standards and fraud risk.

The bank's exposure to the asset class has grown steadily, with its private credit loan portfolio reaching €25.9bn at amortised cost. Deutsche Bank has particularly strong exposure to technology borrowers, with loans to the technology sector, including software companies, totaling €15.8bn.