A screen is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S.

Andrew Kelly | Reuters

A global finance watchdog is demanding national regulators better scrutinize private credit, warning that banks, asset managers, insurance and private equity firms are exposed to an assortment of growing risks in the near $2 trillion sector.

In a wide-ranging study published Wednesday, the Financial Stability Board said the industry's lack of standardized, transparent data, along with opaque valuation practices and complex funding structures and vehicles, is bringing vulnerabilities to broader markets.

It comes amid growing jitters surrounding private credit in the U.S.…