European banks reassure investors as private credit risks resurface amid recent sector troubles.

European banks including UBS, Deutsche Bank, Barclays, and Santander have addressed investor concerns about their exposure to private credit, a sector facing recent stress due to collapses like Market Financial Solutions (MFS). Barclays disclosed a £15 billion exposure and took a £228 million hit linked to MFS, while Santander said its exposure is minimal and fully covered. UBS and Deutsche Bank emphasized their diversified and high-quality private credit portfolios. However, Bank of America highlights ongoing investor anxiety over opaque risks, especially in U.S. business development companies and software lending, with European credit losses more linked to chemicals and trade impacts from China. The situation remains under close watch as banks maintain cautious optimism about their credit systems and risk management.