Finance
Shadow Bank Loans From US Lenders Surpass $1 Trillion in Fed Data
- Banks’ lending to non-bank financial firms has steadily risen
- Janet Yellen said this week that officials are monitoring risk
Photographer: Mlesna/E+/Getty Images
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The amount that US banks have loaned to so-called shadow banks surpassed the $1 trillion mark, according to Federal Reserve data, even as regulators warn of potential risks to the financial system.
The Fed reported Friday that lenders crossed the threshold in loans outstanding to non-deposit-taking financial companies such as fintechs and private credit investors at the end of January. The figure was about $894 billion a year earlier, the data show.