The banking industry is looking strong, with loan default rates remaining low — a sign that banks are managing credit risk well. Consumers are holding up too, with wage growth roughly keeping pace with inflation, though after taxes real income is still lagging. Nonbank lenders are a different story. The recent bankruptcy of Tricolor highlights the risks in this sector, showing why these lenders are worth watching closely. In this video, we break down the health of banks, the state of the consumer, and why nonbank lenders may be the weak link in the credit market.