Do Non-Bank Lenders Mitigate Credit Supply Shocks? Evidence from a Major Bank Exit

Puntos clave

• Credit supply shocks may decrease with non-bank lenders stepping in after bank exits.
• Non-bank lenders provided crucial financial support during a major bank exit, improving market dynamics.
• Observational analysis tracked credit responses following a significant bank exit event, revealing notable trends.
• These findings highlight the important role of non-bank lenders in maintaining financial stability during disruptions.