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Bank lending to non-bank financial intermediaries hits $1.7 trillion

Original: Bank lending to non-bank financial intermediaries reaches $1.7 trillion

The Federal Reserve Bank of Boston reports that bank lending to non-bank financial intermediaries has reached $1.7 trillion. The figure highlights the growing scale of financial connections between traditional banks and entities such as hedge funds, private credit funds and other shadow-banking players. Analysts are likely to debate what the growing exposure means for financial stability and systemic risk.

Why now: New Fed research quantifies banks' growing exposure to non-bank financial institutions, raising financial stability concerns

Federal Reserve Bank of Boston

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