Global Trustee and Fiduciary Services Bite-Sized Issue 2 2026

19 QUICK LINKS AIFMD BENCHMARKS REGULATION CRYPTOASSETS FINTECH FUND LIQUIDITY MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 2 | 2026 The Committee’s key findings and conclusions include: • Reforms introduced after the Global Financial Crisis – particularly bank capital and liquidity regulatory requirements – have, as intended, encouraged the banking system to retreat from riskier lending, leaving certain segments of the economy, including SMEs, less well served by banks. • Banks are increasingly relying on an ‘originate to distribute’ model of lending, in which private credit plays a significant role. • The availability of SME finance has been squeezed by a combination of changes to bank capital and the fact that private credit has not entered the SME finance market. Addressing constraints on smaller and specialist banks’ ability to lend could increase the finance available to SMEs, should demand, which has been subdued for some time, increase. • The growth in collateralised loan obligations and significant risk transfers in the UK may pose a potential risk to the UK’s financial stability. The Bank of England and the Prudential Regulation Authority should pay close attention to the development of these markets. • Throughout the inquiry, the Committee asked for data from the regulators, academics, and industry trade bodies and firms. However, the Committee said it was not able to obtain extensive or detailed data on the growth of private markets in the UK, the growth of lending provided by private credit, or the scale of the interconnections between banks and private markets. The Committee said it is concerned that this might represent a gap in policy and rule makers’ evidence base. • The Committee said it was concerned by the apparent passivity on the part of HM Treasury about the concerns raised in its inquiry. It noted that HM Treasury has a responsibility to maintain financial stability, so that the risk that the taxpayer serves as a backstop to the financial system is mitigated. Link to the Report here