Who Finances Real Sector Lenders?

Abstract

The modern financial system is complex, with funding flowing not just from the financial sector to the real sector but within the financial sector through an intricate network of financial claims. While much of our work focuses on understanding the end result of these flows—credit provided to the real sector—we explore in this post how accounting for interlinkages across the financial sector changes our perception of who finances credit to the real sector.

To view post: https://libertystreeteconomics.newyorkfed.org/2025/05/who-finances-real-sector-lenders/

Keywords: real sector lending, financial networks, Nonbank (NBFI), intermediated credit

JEL Classification: G21, G32