WORKING PAPERS

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

> Latest version: Jul 2026

> Summary: VoxEU | SUERF Policy Brief

We study how banking groups adjust credit supply when loan-supply macroprudential policies tighten. Using global syndicated corporate loan data and a new parent-subsidiary ownership dataset, we show that banking groups reallocate lending from bank subsidiaries toward affiliated nonbank financial institutions (NBFIs). NBFI subsidiaries expand lending relative to bank subsidiaries within the same group and in absolute terms, offsetting more than half of the contraction in bank lending. This intra-group reallocation channel is reversed for capital-based measures that affect the group’s capital position. Our findings show how the regulatory perimeter shapes credit allocation within banking groups and deepens bank–nonbank interconnectedness.



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