## Banking on Nonbanks

_IMF Working Papers, February 6, 2026_

## Source details

**Canonical URL:** [Banking on Nonbanks](https://www.imf.org/en/publications/wp/issues/2026/02/06/banking-on-nonbanks-573725)

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## Bibliographic details
- Authors: Bruno Albuquerque, Eugenio M Cerutti, Melih Firat, Benedikt Kagerer
- Published: February 6, 2026
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229039208.001

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### Summary
- Study objective: examine how banking groups adjust corporate credit supply in response to tighter macroprudential policies.
- Data: granular data on syndicated corporate loans.
- Main result: banking groups reallocate lending from bank subsidiaries toward affiliated nonbank financial institutions (NBFIs) following regulatory tightening.

### Key findings
- Relative to bank subsidiaries within the same group, NBFI subsidiaries expand lending after macroprudential tightening.
- NBFI subsidiaries' credit supply increases in absolute terms following tightening.
- Quantitative estimate: by “banking on” their nonbanks, banking groups offset, on average, more than half of the contraction in bank lending induced by macroprudential tightening.
- Implication: an important intra-group reallocation channel allows banking groups to partially offset regulatory constraints and results in greater bank–nonbank interconnectedness.

### Methodology and scope
- Empirical approach: analysis based on granular syndicated corporate loan data.
- Focus: reallocation of lending within banking groups between bank subsidiaries and affiliated nonbank financial institutions.

### Policy implications and interpretation
- Macroprudential tightening aimed at bank credit can be partly neutralized by intra-group shifts toward NBFIs.
- Regulatory frameworks should account for intra-group reallocation channels to avoid unintended increases in bank–nonbank interconnectedness.
- Monitoring and policy design may need to incorporate affiliated NBFIs when assessing the effectiveness of macroprudential measures.

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_Source: https://www.imf.org/en/publications/wp/issues/2026/02/06/banking-on-nonbanks-573725_