Non-bank Lenders and the Next Potential Credit Crisis

After the 2008 financial crisis regulators made changes to strengthen the banking system; coming out of the crisis investors of all different types stepped into fill financing needs; now there are some worries about risks associated with these lenders which are not regulated like banks; data tracking US Business Development Companies shows lenders to small businesses has halved since February; according to this op-ed in the FT, one of the main concerns is that flow of credit to the non-financial economy stops; this article shares some of the downstream impacts of the coronavirus and what’s currently going on in the credit markets. Financial Times

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