Alternative Lending

The book "Alternative Lending" offers a comprehensive analysis of the emerging market for alternative lending, particularly through the examination of debt funds in the European Union. It highlights the risks that these new sources of financing may pose to the stability of the financial system and discusses the regulatory and supervisory tools available to mitigate these risks. By identifying the reasons for the growth of alternative lenders, such as the assets of Alternative Investment Funds (AIFs), it analyzes the systemic importance of these actors as well as the channels through which systemic risks can be transmitted to the banking sector. Furthermore, the theory of financial innovation and market failure is addressed, demonstrating how financial innovations like debt funds and securitizations can lead to market failures, necessitating regulatory interventions. This book is aimed at academics, researchers, and practitioners in the field of banking and financial regulation, providing a detailed analysis of the existing regulatory frameworks for credit institutions and debt funds.