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JPMorgan Chase (JPM) CEO Jamie Dimon shrugged off worries about the private credit sector on Tuesday, saying that the concerns weren’t “systemic.”

“It almost can't be systemic at that size relative to anything else,” Dimon said during a Tuesday earnings call with analysts.

“I’m not particularly worried about it,” he added.

Dimon said that during a wider credit downturn, some lending business “will probably come back to banks.”

The private credit industry has grown rapidly in the decade since the financial crisis, due in large part to US banking reforms that curtailed riskier lending.

Over the last quarter, private credit funds have seen elevated levels of investor redemption requests, spurring a growing number of managers to limit withdrawals to 5%.

The moment coincides with rising worry some private debt funds hold high exposure to software companies at risk of disruption from advances in artificial intelligence.

Big banks not only lend to these funds, but they also manage some of their own.

JPMorgan said earlier this year that the bank carries about $50 billion of exposure to the private credit industry.

On Tuesday other banks shared their exposure as well. Wells Fargo said it holds roughly $36 billion exposure to private credit firms. Citigroup said exposure to private credit was $22 billion in the fourth quarter.

On Monday, Goldman Sachs CEO David Solomon also played down some concern over its exposure to the private credit world without dismissing the wider severity of a credit downturn.

Last week, Goldman’s non-public fund, the Goldman Sachs Private Credit Corporation, met quarterly redemption requests of 4.9% without having to limit withdrawals.

“There's going to continue to be some noise around the retail space,” Solomon said, adding that his firm has encountered fewer issues and its private debt business “continues with any sort of a medium-term or longer-term view to be a very, very attractive platform for us.”

David Hollerith covers the financial sector, ranging from the country's biggest banks to regional lenders, private equity firms, and the cryptocurrency space.

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