Given the far larger quantities of non-bank credit which depend for its facilitation on bank credit, the negative impact on the economy of banks becoming risk averse is poorly understood.

Source: https://www.lewrockwell.com/2023/01/alasdair-macleod/the-evolution-of-credit-and-debt-in-2023/

It all has to do with the valuation of bank stocks versus the valuation of non-bank fintech stocks.

Source: https://investorplace.com/market360/2023/01/buyer-beware-the-upside-potential-for-sofi-stock-is-limited/

It is hoped the potential entry of a new non-bank player in the overly concentrated credit market will boost competition for households and small businesses and lower credit costs.

Source: https://www.timesofisrael.com/israeli-insurer-menora-bids-to-buy-control-in-isracard-at-nis-3-07b-valuation/