On 2 July 2025, the House of Lords Financial Services Regulation Committee launched an inquiry into the growth of private markets in the UK.

The inquiry will assess whether post‑2008 capital and liquidity requirements have constrained traditional bank lending, thereby shifting financial activity and risk toward private markets. Key areas of focus of the inquiry include:

• the impact of regulatory reforms on banks’ capacity and willingness to lend;
• the extent to which risk has migrated from the banking sector to private markets; and
• the visibility the Bank of England has over private market activities and their interconnections with the banking sector.

The Committee’s ten questions aim to explore the differing regulatory approaches applied to the banking sector and private markets, and to assess any systemic risks that may arise as financial activities increasingly move beyond the scope of traditional banking regulation.

Next Steps

Stakeholders are invited to submit their responses and any verifiable data to inform their answers by 18 September 2025.

We recommend monitoring developments closely and considering participation in the call for evidence.