Competition, especially free market competition is one of the enemies of capitalism.

Fortunately for capitalists in a liberalised (unregulated) market it's not too hard to build up market power somewhere in the supply chain, and squeeze out, or effectively force the competition into franchise.

Almost unavoidable economies of scale in industries like banking are huge problem, that concentrates critical market power and drives out competition under the guise of plausible investor friendly sounding shit like "risk premia", "international competitiveness", "labour cost efficiency". Directed credit, sectoral and regional should be part of being a bank, the banks have been given responsibility for running the economy, but not made accountable for it. That's why they can get away with investing in real estate bubbles instead of productive industry.

FDR was one of the last USA leaders who seemed to understand the role of banks - sadly that was a long time ago and those ideas seem to be long forgotten.