U.S. Banks: 4Q25 Private Credit & NDFI Exposures

U.S. Banks: 4Q25 Private Credit & NDFI Exposures

Peter Simon, CFA: Head of Banks - CreditSights

18 March 2026

Download the Full Report to gain insights on:
  • How major banks structure lending relationships with private credit funds and business development companies.
  • Whether growing exposure to business credit intermediaries represents meaningful systemic risk for financial institutions.
  • What Federal Reserve stress testing reveals about NDFI lending resilience under severe scenarios.
  • How collateralization practices and loan structures shape actual risk profiles across fund types.
  • Which banks demonstrate shifting exposure patterns and what strategic approaches management teams emphasize.

Executive Summary

Banks’ latest exposures to non-bank financials reveal important lending relationship patterns. Regulatory data provides insights into evolving connections between traditional and alternative finance.

Business credit intermediary lending grew modestly across most major financial institutions recently. Detailed breakdowns of private credit exposure remain limited in public disclosures.

Recent market concerns have not fundamentally altered perspectives on sector stability. Rather, conservative lending structures appear designed to mitigate potential downside risk scenarios.

Loan arrangements typically feature substantial collateral protection through diversified portfolio structures. Additionally, subscription facilities rely on limited partner commitments providing further security.

Treasury research compiled confidential filings to analyze counterparty relationships between institutions. Furthermore, stress testing models suggest these exposures carry lower default probabilities.

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