The Financial Stability Board (FSB), which includes central bank governors and finance ministers from major economies, is examining the risks posed by retail investors entering the $1.8 trillion private credit market. This scrutiny follows a surge in redemption requests, with wealthy individuals attempting to withdraw approximately $20 billion from private credit funds but only managing to redeem about half due to asset managers limiting withdrawals. The FSB's focus on private credit comes as concerns grow over loan quality and the potential impact of AI on borrowers. FSB Chair Andrew Bailey has highlighted the rapid growth of private credit and the need for additional safeguards to ensure that retail investors understand the risks involved. The FSB is prioritizing transparency in this asset class and plans to release a report on private credit next week, separate from the ongoing assessment of retail participation.