How has nonbank credit affected traditional bank lending?

I'm particularly interested in three effects of nonbank lending (e.g. shadow banking and private credit):



loans and leases in bank credit(do nonbanks crowd-out or displace banks?)

bank loan performance (do nonbanks exhibit adverse selection and how do they affect broader delinquencies, chargeoffs, and defaults?)

financial conditions (do nonbanks contribute to procyclical or countercyclical loosening/tightening?)


This podcast is AI-generated with NotebookLM, using the following sources, research, and analysis:



"⁠⁠Is Shadow Banking Really Banking?⁠⁠" (St. Louis Fed, Noeth/Sengupta, 2011.10.01)

"⁠⁠Shadow Banking⁠⁠" (FRBNY, Adrian/Ashcraft/Boesky/Pozsar, 2013.12)

"⁠⁠Shadow Banking and Market Based Finance⁠⁠" (IMF, Adrian, 2017.09.14)

"⁠⁠Non-bank lending during financial crises⁠⁠" (FDIC, Aldasoro/Doerr/Zhou, 2022.01)

"⁠⁠Liquidity, pledgeability, and the nature of lending⁠⁠" (Diamond/Hu/Rajan, 2022.03)

"⁠⁠Nonbank lenders as global shock absorbers: Evidence from US monetary policy spillovers⁠⁠" (BOE, Elliott/Meisenzahl/Paydro, 2023.01.13)

"⁠⁠The Disparate Outcomes of Bank‑ and Nonbank‑Financed Private Credit Expansions⁠⁠" (FRBNY, Boyarchenko/Elias, 2023.08.20)

"⁠⁠Private Credit: Characteristics and Risks⁠⁠" (Fed, Cai/Haque, 2024.02.23)

"⁠⁠Financing Private Credit⁠⁠" (FRBNY, Boyarchenko/Elias, 2024.08)

"⁠Bank Lending to Nonbanks: A Robust Channel Fueled by Constrained Capital?⁠" (FDIC, Krainer/Vaghefi/Wang, 2024.09.05)

⁠Loans and Leases in Bank Credit⁠ (St. Louis Fed/FRED⁠, 2024.10.17)

⁠Commercial Bank Delinquency Rates⁠ (St. Louis Fed/FRED, 2024.10.17)

⁠Commercial Bank Chargeoff Rates ⁠(⁠St. Louis Fed/FRED⁠, 2024.10.17)

⁠Financial Conditions Index "FCI"⁠ (St. Louis Fed/FRED, 2024.10.17)


Not investment advice; do your own due diligence!

# finance financials capital markets