HSBC has announced that it will pause its $4 billion private credit investment plan, despite unveiling the initiative last year as part of its efforts to muscle into the alternative lending market.
The lender had stated its intention to utilise its $3.2 trillion balance sheet to expand its presence in this sphere. However, the bank has now decided to reassess the plan in light of the current market conditions.
News of the paused investment plan comes amidst growing concerns over economic instability and a potential recession in the UK.
According to a report by Bloomberg, HSBC's decision to put the plan on hold has been attributed to the lender's desire to maintain a cautious approach in light of the current economic climate.
The UK's financial sector has been under scrutiny in recent times, with many investors and analysts warning of a potential downturn in the market.