Shadow Bank Loans Top $1 Trillion as US Regulators Warn of Risks

The amount that US banks have loaned to so-called shadow banks surpassed the $1 trillion mark, according to Federal Reserve data, even as regulators warn of potential risks to the financial system.

The Fed reported Friday that lenders crossed the threshold in loans outstanding to non-deposit-taking financial companies such as fintechs and private credit investors at the end of January. The figure was about $894 billion a year earlier, the data show.

Read more: US Lays Path for More Financial Giants to Get Fed Oversight

Treasury Secretary Janet Yellen said this week that US regulators are monitoring risks stemming from ...