Bank of America commits $25bn to private credit lending

Bank of America’s move comes at a time of heightened scrutiny of private loans © BloombergBank of America commits $25bn to private credit lending on x (opens in a new window)Bank of America commits $25bn to private credit lending on facebook (opens in a new window)Bank of America commits $25bn to private credit lending on linkedin (opens in a new window)Bank of America commits $25bn to private credit lending on whatsapp (opens in a new window) Save Bank of America commits $25bn to private credit lending on x (opens in a new window)Bank of America commits $25bn to private credit lending on facebook (opens in a new window)Bank of America commits $25bn to private credit lending on linkedin (opens in a new window)Bank of America commits $25bn to private credit lending on whatsapp (opens in a new window) Save Akila Quinio in New YorkPublishedFebruary 19 2026Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Bank of America is committing $25bn to private credit loans, becoming the latest Wall Street lender seeking to compete with non-bank rivals in the sector as concerns begin to mount over credit quality and liquidity. “This commitment further strengthens our ability to meet the evolving needs of our corporate and private equity clients and to drive strong returns for our shareholders,” Bruce Thompson, vice-chair and head of enterprise credit, said in one of the memos.BofA’s announcement comes at a time of heightened credit quality scrutiny of private loans, amid high-profile defaults and rising concern over private capital exposure to software companies vulnerable to AI disruption. Private credit group Blue Owl on Wednesday said it would permanently restrict investors from withdrawing their cash from its inaugural private retail debt fund, prompting further worries over the health of the sector.The bank’s private credit initiative follows similar moves by other big Wall Street banks. JPMorgan said last year it would set aside $50bn to lend to risky companies backed by private equity firms, as part of a wider push into the credit market.Banks including Citigroup and Wells Fargo have partnered with asset managers — Apollo and Centerbridge respectively — to make inroads in the market. Others, such as Goldman Sachs and Morgan Stanley, have turned to dedicated funds in their own wealth and asset management arms to invest in the sector.Separately, BofA named veteran Anand Melvani head of private credit within the bank’s global capital market division, according to a memo sent to staff on Thursday. Melvani will also remain in his role as head of Americas leveraged finance.BofA also named Scott Wiate as head of private credit, structuring and underwriting, reporting to Thompson, according to another memo. The strategy and job moves were earlier reported by Bloomberg.Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Private credit Add to myFT US companies Add to myFT US banks Add to myFT Banks Add to myFT Financial services Add to myFT CommentsBank of America is committing $25bn to private credit loans, becoming the latest Wall Street lender seeking to compete with non-bank rivals in the sector as concerns begin to mount over credit quality and liquidity. “This commitment further strengthens our ability to meet the evolving needs of our corporate and private equity clients and to drive strong returns for our shareholders,” Bruce Thompson, vice-chair and head of enterprise credit, said in one of the memos.BofA’s announcement comes at a time of heightened credit quality scrutiny of private loans, amid high-profile defaults and rising concern over private capital exposure to software companies vulnerable to AI disruption. Private credit group Blue Owl on Wednesday said it would permanently restrict investors from withdrawing their cash from its inaugural private retail debt fund, prompting further worries over the health of the sector.The bank’s private credit initiative follows similar moves by other big Wall Street banks. JPMorgan said last year it would set aside $50bn to lend to risky companies backed by private equity firms, as part of a wider push into the credit market.Banks including Citigroup and Wells Fargo have partnered with asset managers — Apollo and Centerbridge respectively — to make inroads in the market. Others, such as Goldman Sachs and Morgan Stanley, have turned to dedicated funds in their own wealth and asset management arms to invest in the sector.Separately, BofA named veteran Anand Melvani head of private credit within the bank’s global capital market division, according to a memo sent to staff on Thursday. Melvani will also remain in his role as head of Americas leveraged finance.BofA also named Scott Wiate as head of private credit, structuring and underwriting, reporting to Thompson, according to another memo. The strategy and job moves were earlier reported by Bloomberg.