# Banks Keep Funding the Non-Banks. $1.65T in Q1 2026, Up 42% in Five Quarters. US Banks NDFI Update.

Published: 2026-05-30

Q1 2026 update on US bank lending to non-depository financial institutions (NDFI) - the channel funding private credit. Balances hit $1.65T, up 42% in five quarters and now 14.2% of the entire bank loan book (up from 11.1%) or 7.1% of total assets (up from 5.6%). 622 banks. Top 10 hold 73% of all NDFI loans. Subcategory mix: Business Credit $435B (26%), PE Funds $383B (23%), Mortgage Credit $368B (22%), Other NDFIs $269B (16%), Consumer Credit $166B (10%). Top lenders: JPMorgan $238B, Wells Fargo $228B, Bank of America $213B, Goldman $123B, Citi $123B. Add undrawn commitments of $1.06T and total exposure hits $2.7T. The Fed, FSB, OCC, IMF, ECB, BoE and DOJ all flagging it; Fitch private-credit default rate at a record 6.0%; Bank of England calling it a 'market for lemons'. Tool live at tigzig.com/tools/us-ndfi (TREMOR) with bank-level balances, commitments, credit quality and exposure - free, no login, sourced directly from quarterly FFIEC Call Reports (Schedule RC-C). Continues the four-dispatch private-credit series (Mar 24, Mar 26, May 8, May 28).

## Where to find the full content

- HTML page (full text, image deck, links): https://tigzig.com/post/us-banks-ndfi-q1-2026-update-may2026
- Markdown of the HTML page: send GET https://tigzig.com/post/us-banks-ndfi-q1-2026-update-may2026 with header `Accept: text/markdown`
- PDF deck (full analysis, charts, sources): https://tigzig.com/files/US_BANKS_NDFI_MAY2026.pdf

## Tags
portfolio-quants

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## Full analysis transcript (extracted from PDF deck)

_This text was extracted from the source PowerPoint deck. Chart visuals (referenced as "no text content - see PNG at /files/...") are in the PDF and slide images on the HTML page._

*TIGZIG · US Banks · NDFI · Q1 2026 Update*

US bank loans to non-depository financial institutions hit **$1.65 trillion** in Q1 2026, **up 42% in five quarters**, now **14.2%** of the entire bank loan book. This is the channel that funds private credit.

Central banks and regulators are all now flagging it: **the Fed, FSB, OCC, IMF, ECB, BoE and the DOJ.**

**Q1 2026 - Now updated.** Explore the data yourself, free, no login: tigzig.com → TREMOR → US NDFI. Balances · Commitments · Credit Quality · Exposure.

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## 622 Banks. $1.65T. Five Quarters Straight Up.

**The headline numbers (Q1 2026):**

- **NDFI loans:** $1,650B.
- **5-quarter growth:** +42% (+5.1% this quarter).
- **% of bank assets:** 7.1% (up from 5.6%).
- **% of bank loan book:** 14.2% (up from 11.1%).

**The quarter-by-quarter climb:**

| Quarter | NDFI Loans ($B) |
|---|---:|
| Q4 '24 | 1,159 |
| Q1 '25 | 1,273 |
| Q2 '25 | 1,383 |
| Q3 '25 | 1,463 |
| Q4 '25 | 1,569 |
| **Q1 '26** | **1,650** |

Five quarters straight up. Not one quarter down.

**Top 10 banks hold 73% of all NDFI loans.**

### What the loans fund (by NDFI subcategory, $B of balance)

- **Business Credit** - $435B (26%).
- **PE Funds** - $383B (23%).
- **Mortgage Credit** - $368B (22%).
- **Other NDFIs** - $269B (16%).
- **Consumer Credit** - $166B (10%).

### Who holds it (top NDFI lenders, $B and share)

- **JPMorgan Chase** - $238B (14.4%).
- **Wells Fargo** - $228B (13.8%).
- **Bank of America** - $213B (12.9%).
- **Goldman Sachs** - $123B (7.5%).
- **Citibank** - $123B (7.5%).

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## The Bigger Picture - The Drawn Balance is Only Half the Story

**Add the undrawn lines and exposure hits $2.7T.** $1.65T already lent, plus **$1.06T in commitments** still to be drawn.

**And the stress is showing.** The private-credit default rate just hit a **record 6.0%** (Fitch), though roughly 9 in 10 of those are stressed restructurings, not bankruptcies. The Bank of England calls it a *"market for lemons."*

### The previous four dispatches

Read them all at [tigzig.com/analysis](https://tigzig.com/analysis).

- **04 - May 28** - [Is Private Credit Turning Into a Lemon?](https://www.tigzig.com/post/private-credit-market-for-lemons-may2026) (latest)
- **03 - May 8** - [Red Flag in US Life Insurance: $2.4T in Private Credit](https://www.tigzig.com/post/us-life-insurance-red-flag-private-credit-offshore)
- **02 - Mar 26** - [US Banks & Non-Bank Lending: How Deep Is the Exposure?](https://www.tigzig.com/post/us-banks-ndfc-lending-systemic-risk-2026)
- **01 - Mar 24** - [The $2.7T Shadow Lending Market Is Showing Cracks](https://www.tigzig.com/post/private-credit-shadow-lending-cracks-2026)

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*Source: "Loans to nondepository financial institutions," reported by US banks in their quarterly FFIEC Call Reports (Schedule RC-C), Q1 2026. US-domiciled exposure only; foreign-branch lending not included. Served via Tremor. Default-rate and regulator references from the Tigzig private-credit series.*

*Amar Harolikar - Decision Sciences & Applied AI - [tigzig.com](https://tigzig.com) - Tools for analytics, quants and macro signals. Built by an analyst, for analysts.*