Deutsche Bank (DB) has revealed in its annual report that it has $30 billion in private credit exposure in 2025. The bank reported higher fee revenues within the private-credit lending space and increased balance sheets due to concerns about higher interest rates, a change in investor sentiment, and refinancing risks. Despite claiming it is not exposed to major risk related to these NBFIs, DB may face indirect credit risks through interconnected counterparties. This could lead to a deterioration in Deutsche Bank’s portfolio quality and higher-than-expected credit losses, as well as increased capital and liquidity demands. This acknowledgement from a traditional bank has highlighted weaknesses within the “shadow banking” sector.