In July 2025, the Financial Services Regulation Committee of the House of Lords (the Committee) commenced an inquiry into the growth of non-bank lending. A particular focus of the inquiry is on whether the developments in bank regulation following the global financial crisis (GFC), particularly enhanced capital and liquidity standards, have inhibited the amount of bank lending to the “real economy” in the UK, leaving non-bank financial institutions (NBFIs) to satisfy the unfulfilled demand for credit, and if that is the case, what the financial stability implications of this are.
Non-Bank Lending in the Spotlight: UK House of Lords Inquiry into Systemic Risks and Market Stability
