... The central bank may worry that narrow banks, which lend to neither companies nor individuals, could hamper the effectiveness of monetary policy. Their busi

... The central bank may worry that narrow banks, which lend to neither companies nor individuals, could hamper the effectiveness of monetary policy. Their business model may also risk unsettling incumbent banks, which could have large economic consequences. ... This is almost certainly a big reason for the opposition. The Federal reserve wants to keep people from "hoarding" (saving) money at all costs. Driving down interest rates and causing inflation is one tactic. Preventing the emergence of banks who can out-compete the rest of the market on interest rates is another.