Further, there has also been some change in the maturity profile of credit union loan books reflecting a start in utilisation of the additional capacity provided in 2020 – though it is notable that activity in house and business lending has been relatively limited and confined to a small number of credit unions. However, overall, the pace of business model change has been slow.
In this context, non-banks are playing an increasing role in financing the real economy. The rising levels of liquidity stress at the height of the crisis highlighted important weaknesses in the policy framework for non-banks.