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BANKING ISSUES IN FOCUS | FEBRUARY 18, 2026 |
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Bank Lending to Nondepository Financial Institutions
Bank lending to nondepository financial institutions (NDFIs) has been the fastest-growing loan segment since the 2008-2009 Global Financial Crisis. In December 2024, bank regulatory agencies added additional fields to the Call Report to disaggregate bank loans to NDFIs and to collect data on unfunded commitments and performance.
The FDIC report “Bank Lending to Nondepository Financial Institutions” discusses the growth of bank lending to NDFIs and bank connections to these lenders, explains recent changes to the Call Report and trends in bank lending to NDFIs, and discusses the growth of NDFIs.
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This FDIC report finds that:
- Bank loans to NDFIs grew at a compound annual growth rate of 21.9 percent from 2010 to 2024, almost three times as fast as the next-fastest-growing segment.
- Recently added Call Report fields show that more than half of bank lending to NDFIs is to credit intermediaries, and about a quarter is to private equity funds.
- The NDFI share of the financial sector has not grown since 2000, but the composition of NDFI assets has shifted.
- Bank lending to NDFIs have lower delinquency rates than similar loans to businesses not secured by real estate.
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