The past two decades have witnessed a surge of credit supply from traditional banks to non-bank financial institutions. In this paper, we study the resilience of banks’ lending to nonbanks during periods of bank distress. Using a comprehensive supervisory credit register dataset of syndicated loans, we compare lending activity across the distressed banks based on their exposure to two major economic shocks: the oil and gas shock of 2015, and the Covid-19 pandemic. Contrary to concerns about the fragility of nonbank finance, we find that instead of decreasing lending to nonbanks, distressed banks exposed to the stress actually shifted lending portfolio towards nonbanks. The effects are especially strong among banks with weaker core capital positions, suggesting potential regulatory benefits from the lower capital charges associated with lending to nonbanks. In addition, we find that nonbanks relying on bank funding continued lending to the economy and engaged in fewer loan sales during periods of stress. These findings highlight the resilience of bank lending to nonbanks which fuels the growth of nonbanks as reliable financial intermediaries.