US Super Regional Banks Regain Share in C&I Lending as Private Credit Loses Momentum
In Q2 2026, US super regional banks experienced notable growth in commercial and industrial (C&I) lending, reclaiming market share from private credit firms. This shift marks a reversal after years of non-bank financial institutions outpacing traditional lenders. Banks such as PNC, Regions, M&T, Fifth Third, KeyCorp, Citizens, and US Bancorp reported strong C&I loan growth driven by increased borrower demand rather than AI-related lending. The rise in line utilization rates suggests sustained borrowing activity, with companies not only securing credit lines but also drawing on them. Private credit firms faced early signs of stress during 2026, including redemption pressures and weaker competition from banks that now leverage stable deposits and stronger balance sheets to expand corporate lending. This trend supports broader market stability as regulated institutions fill the gap left by private lenders. The resurgence in bank-led C&I lending could signal future expansion in commercial real estate (CRE) markets and economic activity, potentially leading to more financing options for middle-market borrowers who may rely less on non-bank sources.
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Topics: banks C&I lending loan growth private credit