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Shadow Banks Could Take $11 Billion Annual Profit, Goldman Says

relates to Shadow Banks Could Take $11 Billion Annual Profit, Goldman Says
Photographer: Jeff Hutchens/Getty Images

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 non-bank 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.