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

Published: May 30, 2026

Just updated US Banks NDFI data for Q1 2026... the same piece everyone is now worried about... the Fed, FSB, OCC, BoE, ECB, IMF... they are all flagging it. And the balances keep going up.

This is US bank loans to non-banks. Basically, the lenders sitting behind private credit.

Go have a look: tigzig.com → TREMOR → US NDFI. Free. No Login.

It pulls straight from the quarterly regulatory filing, the FFIEC call reports... every bank.

The number just keeps going up. It is now $1.65 trillion, up 42% in five quarters. Not one quarter down. Same piece that central bankers and regulators are referring to as 'layer cake', 'market for lemons', 'opaque'... and Federal prosecutors are scrutinizing the valuation marks at a BlackRock BDC.

The data is all there to dig into... bank level... balances, commitments, credit quality, who holds what.

I have also done four deeper write-ups on the private credit story. All at tigzig.com/analysis.

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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.


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:

QuarterNDFI Loans ($B)
Q4 '241,159
Q1 '251,273
Q2 '251,383
Q3 '251,463
Q4 '251,569
Q1 '261,650

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%).

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.


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.