Evolution of Debt Financing toward Less-Regulated Financial Intermediaries in the United States / Isil Erel, Eduard Inozemtsev.

Format:

Book

Author/Creator:

Erel, Isil.

Contributor:

National Bureau of Economic Research.

Inozemtsev, Eduard.

Series:

Working Paper Series (National Bureau of Economic Research) no. w32114.

NBER working paper series no. w32114

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

Nonbank lenders have been playing an increasing role in supplying debt, especially after the Great Recession. How important are the distortions in the greater regulation of banks that differentially limit risk-taking across alternative providers of credit? How might the growing role of nonbanks in credit markets affect financial stability? This selective review addresses these questions and discusses how banks and nonbanks helped provide liquidity to the nonfinancial sector during the COVID-19 pandemic shock. We argue that tighter bank regulation has created incentives for nonbanks to increase their participation in credit markets, a trend that creates concerns about financial stability.

Notes:

Print version record

February 2024.