Regulation has been a "drag on the economy" and the "system needs to be debugged," Blackstone's Stephen Schwarzman said on CNBC's "Closing Bell."
"That doesn't mean that all regulation is bad, but there's a certain balance," Schwarzman said Friday. "Right now, as a result of the regulation, the U.S. banking system really is terrific. It's the best in the world and it needs the freedom to start doing some things like making more loans. You can't grow unless your banking system is expanding and extending credit."
The combination of the current low interest rate environment and cumbersome regulations is like having one foot on the gas while the other is on the brake, Schwarzman said.
The comments by the Blackstone co-founder, chairman and CEO echo those made by President-elect Donald Trump on the campaign trail. Trump promised to cut back on regulations, slash corporate taxes and promote a more business-friendly environment.
Trump on Friday said his administration is "committed to drawing on private sector expertise and cutting the government red tape that is holding back our businesses from hiring, innovating and expanding right here in America."
Earlier Friday, Trump announced Schwarzman will chair his strategic and policy forum, which will feature the heads of some of the largest financial, industrial and media companies in the United States.
— CNBC's Jacob Pramuk contributed to this report.