Global bank credit formation has slowed this year in response to higher borrowing costs and tighter lending standards, but private credit markets continue to expand, the latest Institute of International Finance Global Debt Monitor reports. The IIF estimated that global debt increased by around US$10 trillion in the first half of the year and now stands at an all-time high of US$307 trillion. The bulk of the increase was in developed markets, with the United States, Japan, the United Kingdom and France registering the biggest increases. In emerging markets, there were big increases in China, India and Brazil. At the end of June quarter, global debt-to-GDP was 336 er cent – up from 334 per cent at the end of last year. Indebtedness increased in all sectors – households, non-financial corporates, the financial sector and government. The IIF said there was a marked slowdown in bank lending to households and non-financial businesses. This has been offset in some markets, particularly the US, by the expansion of private credit. IIF estimates that global private debt fund managers raised more than US$250 billion in 2021. As rates rose last year fundraising fell to around US$200 billion. It expects the sector to raise about the same amount of funding this year.