Wall Street banks may be able to claw back market share from private credit lenders, following a decade of rapid growth and dominance in the sector. This shift, along with decreased interest rates and easing bank rules, may shift the balance. Moody's chief economist Mark Zandi highlighted that banks are struggling with the fallout from their aggressive lending and that interest rates have decreased and banking regulation has decreased. The sector's share of buyout financings over $1 billion fell to 39% in 2023, down from about 80% in the five years prior, and has since recovered to just over 50% in 2025. However, private credit's grip is not yet broken, with direct lenders competing aggressively in unitranche loans that bundle different types of debt into one package at a single interest rate. Regulatory changes could further exacerbate the playing field, including a potential weakening of the Basel III Endgame implementation. Recent Federal Reserve proposals could position banks to be more competitive on the lending front, and a potential increase in business lending.