The FDIC issued a multi-part analysis of the shift in
corporate and mortgage loans from banks to nonbanks since the
1950s.
The studies address: (i) shifts from bank to nonbank lending,
(ii) the increased reliance on capital markets for leveraged
lending and corporate borrowing, and (iii) bank and nonbank home
mortgage origination and servicing.
Bank and Nonbank Lending
According to the FDIC, the banking industry "changed dramatically" over the past 70
years. The FDIC asserted that the shift from bank to nonbank loan
origination was primarily caused by securitization. As a result of
this shift, the FDIC warned that:
- underwriting standards may change
when there is an increased loan demand due to the increasing role
of "less-regulated" financial institutions
(i.e., nonbanks) in lending; and
