WORKING PAPERS

Albuquerque, B., Cerutti, E., Chen, N. and Firat, M. (2025), IMF Working Paper WP/25/96, Washington, D.C, International Monetary Fund. R&R at the American Economic Journal: Macroeconomics. 

> Latest version: Mar 2026

> Summary: VoxEU | G20 Global Financial Stability Conference

> Media coverage: Devdiscourse 

The growing role of nonbanks in corporate credit intermediation raises important yet underexplored questions about the transmission of monetary policy (MP) and macroprudential policy (MaPP) to the real economy. Using syndicated loan data, we find that nonbanks act as shock absorbers, cushioning nonfinancial firms from both MaPP and MP tightening. These shocks drive credit away from weaker banks toward nonbanks, raising concerns about credit quality. Our findings highlight that the side effects of tighter MaPP and MP are non-trivial as credit intermediation migrates to a sector largely outside the regulatory perimeter, posing new financial stability risks.


Albuquerque, B., Cerutti, E., Firat, M. and Kagerer, B. (2026), IMF Working Paper WP/26/23, Washington, D.C, International Monetary Fund.

> Latest version: Mar 2026

> Summary: VoxEU

We study how banking groups adjust corporate credit supply in response to tighter macroprudential policies. Using granular data on syndicated corporate loans, we show that banking groups reallocate lending from bank subsidiaries toward affiliated nonbank financial institutions (NBFIs) following regulatory tightening. Relative to bank subsidiaries within the same group, NBFI subsidiaries expand lending, and their credit supply also increases in absolute terms. We estimate that by `banking on' their nonbanks, banking groups offset, on average, more than half of the contraction in bank lending induced by macroprudential tightening. Our findings highlight an important intra-group reallocation channel through which banking groups can partially offset regulatory constraints and result in greater bank–nonbank interconnectedness.



WORK IN PROGRESS