Wall Street Faces Prospect of Amazon Bank as FDIC Eases Path

Amazon.com, Facebook Inc., Walmart Inc. and other corporate giants may soon give Wall Street a run for its money as a key U.S. regulator smooths the path for nonbanks to get into lending.

The Federal Deposit Insurance Corp. on Tuesday approved a final rule governing so-called industrial loan companies that will allow major businesses to seek banking charters while escaping capital and liquidity demands faced by dedicated financial firms.

The measure will “provide transparency to market participants regarding the FDIC’s minimum expectations for parent companies of industrial banks,” said Chairman Jelena McWilliams. The new rule formalizes years ...