NDFI loans outstanding rose from $56 billion in Q1 2010 to $1.32 trillion in Q3 2025. NDFI lending as a share of bank lending grew from less than 1% of total loans to 10.0%, and now accounts for more than a third of lending to businesses not secured by real estate. FDIC
From 2010 to 2024, outstanding balances of bank loans to NDFIs rose at a compound annual growth rate of 21.9 percent — almost three times as high as the next-fastest-growing segment. FDIC
Lending to nonbank financial institutions accounted for about 40% of bank loan growth in 2025, though the category only represents about 13% of total bank loans. American Banker
Important caveat on 2024 data: The largest portfolio increases in Q4 2024 were reported in "all other" loans and loans to non-depository financial institutions, largely due to reclassifications following the finalization of changes to how certain loan products should be reported.
Reclassifications also likely caused declines in other loan categories from which the loans were reclassified, particularly C&I and "other" consumer loans. This means the 2024 jump in NDFI share is partly a reporting change, not purely organic growth. FDIC
Banks with assets greater than $100 billion held about 86% of total industry loans to NDFIs as of Q3 2025, and ten of those institutions held about 71% of total loans to NDFIs. FDIC
The trend is unmistakable: NDFI lending has grown from a negligible slice of bank portfolios to a significant and closely-watched category, driven largely by the largest U.S. banks funding private credit funds, mortgage originators, insurance companies, and other shadow banking entities.
Key context from regulators:
NDFI loans outstanding rose from $56 billion in Q1 2010 to $1.32 trillion in Q3 2025. NDFI lending as a share of bank lending grew from less than 1% of total loans to 10.0%, and now accounts for more than a third of lending to businesses not secured by real estate. FDIC
From 2010 to 2024, outstanding balances of bank loans to NDFIs rose at a compound annual growth rate of 21.9 percent — almost three times as high as the next-fastest-growing segment. FDIC
Lending to nonbank financial institutions accounted for about 40% of bank loan growth in 2025, though the category only represents about 13% of total bank loans. American Banker
Important caveat on 2024 data: The largest portfolio increases in Q4 2024 were reported in "all other" loans and loans to non-depository financial institutions, largely due to reclassifications following the finalization of changes to how certain loan products should be reported.
Reclassifications also likely caused declines in other loan categories from which the loans were reclassified, particularly C&I and "other" consumer loans. This means the 2024 jump in NDFI share is partly a reporting change, not purely organic growth. FDIC
Banks with assets greater than $100 billion held about 86% of total industry loans to NDFIs as of Q3 2025, and ten of those institutions held about 71% of total loans to NDFIs. FDIC
The trend is unmistakable: NDFI lending has grown from a negligible slice of bank portfolios to a significant and closely-watched category, driven largely by the largest U.S. banks funding private credit funds, mortgage originators, insurance companies, and other shadow banking entities.
Great additional color, thanks for sharing!
That’s priced like “fine” means stable. The variable is how leverage behaves when growth slows.