Australia’s prudential regulator has asked banks and pensions about their exposure to private credit funding, the latest sign that authorities want more information to identify risks in the country’s debt market in the wake of collapsed property developer Bathla Group. The Australian Prudential Regulation Authority “has proactively engaged with its regulated entities in connection to Bathla and related exposures,” a spokesperson for the regulator said in a statement on Friday. Private lenders make up the bulk of Bathla’s creditors, who are owed about A$3.4 billion after the Sydney residential real estate developer appointed an administrator last month.

Australian regulators are trying to gauge stress in the opaque private lending market that has the potential to spread to other areas of the financial system. “For the banking industry, where exposures to Bathla are negligible, monitoring the interplay between regulated entities and private credit supports the safety and soundness of our banks and the financial system,” the APRA spokesperson said. Last week, the corporate regulator — the Australian Securities and Investments Commission — pointed to a lack of basic information available about the private credit market, making it harder to ascertain potential risks.

APRA is also asking Australian pensions, known locally as superannuation funds, about any potential exposure to Bathla, the spokesperson said. “While APRA-regulated superannuation funds have little direct exposure to Bathla, trustees need to ensure their investment governance is prudent, their valuations applied to investments are appropriate,” they said. The chair of ASIC, Sarah Court, has said it receives limited information and insight into wholesale private credit funds compared to markets such as the US and the UK. Meanwhile, Reserve Bank of Australia Assistant Governor Sarah Hunter this week said the central bank was monitoring Bathla for any potential financial stability risks. “Private credit has been an area that we’ve paid much more attention to recently,” she said.