NDFIs
Three themes that we have talked about a lot around here recently are:
Banking is getting narrower . The classic model of banking is that people need money to buy houses or do business, and they go to banks to borrow the money. This model is risky — if the borrowers don’t pay back the loans, the banks’ deposits will be at risk — and so post-2008 bank regulation has at various margins discouraged bank lending. But people still need loans, so now they increasingly borrow money from other lenders — “private credit” is the big buzzword, but also fintechs and trade finance firms ...