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Speech
Banks and the Rise of Nonbanks in Credit Markets
Presentation at the Federal Reserve Bank of Atlanta's 29th Annual Financial Markets Conference 2025: Financial Intermediation in Transition, delivered by Nicola Cetorelli, Head of Financial Intermediation, Federal Reserve Bank of New York.
Working Paper
Nonbank Lenders as Global Shock Absorbers: Evidence from US Monetary Policy Spillovers
We show that nonbank lenders act as global shock absorbers from US monetary policy spillovers. We exploit loan-level data from the global syndicated lending market and US monetary policy surprises. When US policy tightens, nonbanks increase dollar credit supply to non-US firms (relative to banks), mitigating the dollar credit reduction. This increase is stronger for riskier firms, proxied by emerging market firms, high-yield firms, or firms in countries with stronger capital inflow restrictions. However, firm-lender matching, zombie lending, fragile-nonbank lending, or periods of low vs ...