Banks find an indirect path to subprime auto loans.

Banks have retreated from direct exposure to the subprime auto space only to find new avenues to lend in this space. The WSJ reports:

Bank loans to Exeter and other nonbank financial firms have increased sixfold between 2010 and 2017 to a record high of nearly $345 billion, according to a Wall Street Journal analysis of regulatory filings. They are now one of the largest categories of bank loans to companies.

auto loans banks subprime
Source: Peter Rudegeair, Rachel Louise Ensign and Coulter | "The Wall Street Journal" | The Wall Street Journal | 04/10/2018 | Visit