Rapid US Non-Bank Loan Growth Raises Risk of Wider Losses for Banks
U.S. regional banks’ recent losses tied to non-bank financial institutions (NBFIs) may signal broader risk from this fast-growing loan segment. While these cases may be fraud-related and idiosyncratic, rapid expansion of NBFI exposures increases the chance that concentrated counterparties, combined with weak underwriting, could pressure bank earnings and sentiment beyond individually affected banks.
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