IMF Working Papers

From Banks to Nonbanks: Macroprudential and Monetary Policy Effects on Corporate Lending

By Bruno Albuquerque, Eugenio M Cerutti, Nanyu Chen, Melih Firat

May 23, 2025

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

Bruno Albuquerque, Eugenio M Cerutti, Nanyu Chen, and Melih Firat. "From Banks to Nonbanks: Macroprudential and Monetary Policy Effects on Corporate Lending", IMF Working Papers 2025, 096 (2025), accessed May 25, 2025, https://doi.org/10.5089/9798229008976.001

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The growing role of nonbanks in corporate credit intermediation raises important but underexplored questions about how both monetary policy (MP) and macroprudential policies (MaPP) affect lending and the real economy. Using syndicated loan data, we examine the joint impact of MP and MaPP shocks on credit supply to nonfinancial firms. Our findings show that nonbanks act as shock absorbers, cushioning firms—particularly those with existing nonbank relationships—from policy tightening. We also find that these shocks drive credit away from weaker banks toward nonbanks, raising concerns about credit quality. Finally, we provide evidence that MaPPs on banks can lead them, especially weaker banks, to shift lending to nonbanks and away from nonfinancial corporations. This allows nonbanks to expand their role in corporate credit markets. Overall, our findings highlight that tighter MP and MaPP may unintentionally push credit intermediation into a sector largely outside the regulatory perimeter, posing new financial stability risks.

Subject: Bank credit, Credit, Financial institutions, Financial sector policy and analysis, Financial sector stability, Loans, Macroprudential policy, Money, Syndicated loans

Keywords: Bank credit, Credit, Credit booms, Financial sector stability, Global, Housing booms, Housing busts, Loans, Macroprudential policies, Macroprudential policy, Syndicated loans

Publication Details

You May Also Be Interested In...

Impact of International Shocks on North Macedonia and the Western Balkans: Republic of North Macedonia

May 23, 2025

Macro-Financial Policies and Vulnerabilities in IMF-Supported Programs

May 23, 2025

Haiti: First Review Under the Staff-Monitored Program-Press Release; and Staff Report

May 22, 2025

Republic of Kosovo: Fourth Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo

May 21, 2025