U.S. Bank Liquidity Rule Linked to Faster Private Credit Growth
Photo: TokenPost
A U.S. bank liquidity requirement was associated with faster nonbank lending in counties where affected banks held a larger share of deposits. Private credit consists of loans made directly to companies by nonbank lenders, including funds and asset managers. It expanded more quickly after 2013 in counties where banks covered by the liquidity coverage ratio held a larger share of deposits in 2012. A 10-percentage-point higher share was associated with about 20% more outstanding private credit in the later period. That estimate compares counties; it does not describe growth across the entire U.S. market.
Source: TokenPost
