How regulation and risk reshuffle bank lending strategies

This cluster tracks how banks are recalibrating lending as regulation tightens and credit risks surface. Traditional mortgage lending remains constrained despite talk of easing capital standards, while nonbank and private credit markets show stress, from a UK specialist mortgage lender’s collapse to growing concerns about a broader private credit bust. At the same time, large institutions like Wells Fargo, newly past key regulatory sanctions, are pushing deeper into private equity and specialty lending, as global systemic bank designations continue to shape capital and risk appetites. Together, these developments highlight a shifting credit landscape where banks weigh new growth opportunities against emerging fault lines in shadow and specialty finance.