The European Systemic Risk Board is investigating the risks that the rapidly growing private credit market poses to the European economy and banks. Richard Portes, a member of the ESRB's advisory committee and co-chair of its credit markets task force, told Reuters that the investigation will analyze the potential for private credit to amplify and transmit shocks during financial market turmoil, as well as its interconnectedness with the European financial system. While the market, which has reached about 3.1 trillion dollars, is smaller than the traditional banking industry, concerns remain over the quality of lending standards and a lack of transparency. Based on its findings, the ESRB may recommend that bodies such as the European Securities and Markets Authority and the European Commission use their legal powers to impose regulations.