The Law Faculty is delighted to announce that Dr Narine Lalafaryan (Assistant Professor of Corporate Law; Fellow, Pembroke College; CERF Fellow) has been extensively cited and quoted by the House of Lords Financial Services Regulation Committee in its 2026 report, Private Markets: Unknown Unknowns. This follows Dr Lalafaryan's oral evidence to the Committee in July 2025.
The Committee’s inquiry examined whether post-2008 reforms to regulatory capital and liquidity requirements have constrained banks’ lending capacity, potentially shifting financial risk from traditional banking to private markets. This inquiry assessed whether the post-2008 reforms to regulatory capital and liquidity requirements have limited banks’ ability to lend, thereby shifting risk from the banking sector to private markets. It also explores how much visibility the Bank of England has on the size of these private markets, their interconnectedness with the banking system, and any potential risks that might spill over.
Among the points where Dr Lalafaryan is cited, the Committee highlighted her insights into how highly liquid, competitive secondary markets influence bank lending, including the banks’ role in debt governance. The Committee also noted her observations on the global spread of US investment fund practices, with the UK proving particularly attractive due to the flexibility of its legal system. As a result, London often serves as the first global hub where these trends are tested, refined, adapted — and sometimes rejected. These contributions draw on Dr Lalafaryan’s existing research, including 'Private Credit: A Reinsurance in Corporate Finance' and 'Chameleon Capital', as well as her forthcoming co-authored paper, 'The Global Law of Debt.'
Commenting on the report, the Committee noted: "Although there is clear evidence of the growth of private markets, there is insufficient data to conclude whether private credit is systemic, meaning there are considerable 'unknown unknowns'. The Bank of England is right to shine a light on these developments through its System-Wide Exploratory Scenario, but it must move swiftly; the Government, the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority must continue proactively to monitor developments in private markets."
The full report and the press release summary are available on the Financial Services Regulation Committee website.