As it relates to lending, banks absolutely have a lot to worry about. But so too do many of the alternative lenders that are stealing their business. Many of t

As it relates to lending, banks absolutely have a lot to worry about. But so too do many of the alternative lenders that are stealing their business. Many of these lenders are products of the 2008 economic crash and they have thrived because of the interest rate environment coupled with a period of historically low defaults. When the next downturn arrives, we'll see how the portfolios of the balance sheet lenders fare. The alternative lenders in the business of securitizing loans avoid the biggest risks balance sheet lenders have to deal with, but to generate revenue, they have a never-ending need to originate more loans that they can package and sell to investors. When interest rates rise, or the economy sours, that could get more difficult. A lot more difficult. Alternative lenders are here to stay, but a "wipeout" for banks would take a long time to occur, if it occurs at all. The alternative lenders are going to have their own problems to deal with soon enough.