The U.S. shadow-banking system could take at least $11 billion of annual profit away from traditional lenders as competition intensifies over the next five years, according to analysts at Goldman Sachs Group Inc.
The emergence of nonbank lenders like asset managers and companies such as LendingClub Corp. and CommonBond Inc. is creating more competition for large banks, analysts Ryan M. Nash and Eric Beardsley said in a report. Tougher regulation, including capital rules and technological advances are driving the rise in shadow banking, they said.
