FDIC reports sharp increase in bank-to-nonbank loans

The Federal Deposit Insurance Corporation (FDIC) has identified a substantial surge in lending activities from traditional banks to non-depository financial institutions (NDFIs). According to the FDIC's 2026 Risk Review, outstanding loan balances to these nonbanks have grown at a compound annual rate of 22.7%, significantly outpacing other lending segments. This trend indicates a growing reliance on nonbank lenders for credit, potentially reshaping the financial landscape and introducing new risk considerations for both banks and regulators. The FDIC is closely monitoring this evolving dynamic to ensure financial stability.