Private Credit Exposure Through Non-Traded Business Development Companies ...Middle East

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Private Credit Exposure Through Non-Traded Business Development Companies
Bank participation in middle market direct lending has dropped precipitously over the last two decades. This trend has primarily been driven by massive consolidation within the banking industry, in addition to a general shift to stricter regulatory requirements imposed on banks. The number of FDIC-insured banks in the U.S. has fallen from over 9,100 in 2003 to approximately 4,700 in 2023, while total assets have increased from $9.1 trillion to $23.7 trillion, respectively. Further, regulations such as the Dodd-Frank Act following the Global Financial Crisis (GFC) increased the minimum amount banks were required to hold in liquid assets, leaving banks less inclined to underwrite smaller,

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