JPMorgan Dimon "Credit Crunch Risk Could Be More Serious Than Expected"

Jamie Dimon, CEO of JPMorgan Chase

Jamie Dimon, CEO of JPMorgan Chase, the largest bank in the U.S., reiterated his warning on the 28th (local time) that the credit market contraction could be more severe than expected.

According to Bloomberg, CEO Dimon made these remarks at an investment management conference held in Norway on that day.

He stated that more than 1,000 companies are active in the private credit sector, implying that it would be difficult for all of them to perform well during an economic downturn.

CEO Dimon explained that "some companies may perform well, but not all 1,000 companies will," adding that because there hasn't been a credit crunch for a long time, if one occurs in the future, it could be worse than anticipated.

He added, "It won't be a terrible situation, but private credit will be worse than people think," and "the same could be true for some banks."

With growing concerns about defaults in the private credit market recently, CEO Dimon has repeatedly warned of the risks.

On the same day, CEO Dimon also pointed out that geopolitical risks, such as the war in Iran, are increasing inflationary pressures, but added that he is not immediately concerned about inflation.

Dimon said, "There are many factors stimulating inflation, including the war in Iran, global rearmament, infrastructure demand, and fiscal deficits."