Shadow banks enter a newly uncertain era
XLF•XLF•XLF•XLF•The Federal Deposit Insurance Corporation is set to release quarterly official data on lending by the United States' over 4,000 banks, both public and non-public, on August 25. According to preliminary data, bank loans to non-depository financial institutions grew just 3% in the second quarter versus the first three months of the year.
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Stephen Gandel
NEW YORK, Aug 21 (Reuters Breakingviews) - Loans to private credit funds and other lightly regulated lenders grew just 3% in the second quarter, from 9% a year prior. Reasons for caution abound. Yet these upstarts are now crucial sources of corporate financing, raising the stakes of a slowdown if their funding dries up.
