The Federal Reserve looking determined to continue raising interest rates, at least for the near future. There have been recent tremors in the banking industry when Silicon Valley Bank and Signature Bank were suddenly caught in liquidity-fueled runs. No wonder why federal banking regulators have started to look at how not just banks are working, but non-banks as well.

The Treasury Department's Financial Stability Oversight Council—the top financial regulators in government—has now turned its eye to non-bank financial institutions and making it easier to determine when they should be considered systemically important. That would bring them under greater levels of regulation. It could also have an impact on sources of CRE financing via private funds and shadow lending.

"Under the Trump administration, financial regulators made it more difficult for the federal government to apply that designation to nonbanks, requiring the panel to first conduct a lengthy review of activities in a potentially risky sector before targeting specific firms," reported the Wall Street Journal. "Treasury Secretary Janet Yellen has criticized those Trump-era rules as too onerous and potentially allowing risk to fester in the financial system."