US banks are lending more to private credit firms, private equity shops and hedge funds, with loan volume to these non-bank financial institutions up 26% this year through November, according to Fitch Ratings.
Domestic banks made about $363 billion of new non-bank loans through Nov. 26, Fitch analysts wrote in a
Regulatory capital requirements and strong demand from borrowers contributed to the uptick in lending to non-banks, Fitch said. But the added exposure brings risk for banks, which are increasingly intertwined ...