Banks Pump Billions More Into Private Credit as Frenzy Grows (1)

Banking giants that once had the most ground to lose to the burgeoning world of private credit keep finding more ways — and much more money — to pump into the sector.

For years, the threat was that direct lenders would unseat incumbents by luring away clients and siphoning off corporate-loan business. Now, it seems the biggest US lenders have decided if they can’t avoid that competition, they will throw themselves into it.

Banks including Goldman Sachs Group Inc., Citigroup Inc. and Wells Fargo & Co. have announced plans to cobble together more than $50 billion to plow into ...