07:19 AM EDT, 03/12/2026 (MT Newswires) -- Deutsche Bank ( DB ) said Thursday in its annual report that it has about 26 billion euros ($30 billion) in exposure to private credit, an asset class facing rising scrutiny as investors pull back and concerns grow about loan quality.

The German lender said it does not see "significant risks" tied directly to non-bank financial institutions but warned of potential indirect credit risks through interconnected portfolios and counterparties.

"Failures of a select number of sub-prime lenders in the U.S. increased investor focus on risks associated with private credit," the bank said, also citing concerns about underwriting standards and fraud risk.

The $1.8 trillion private credit market has been under pressure following several corporate failures. Deutsche Bank's ( DB ) private credit portfolio rose to 25.9 billion euros from 24.5 billion euros a year earlier.

Bloomberg said, citing people familiar with the matter, that the bank was among lenders unable to sell about $1.2 billion in loans tied to a software acquisition in a rare hung deal.