Games like Banished Monsters
Games like Banished Monsters include Mouthwashing, Dead by Daylight, Outlast 2, No, I'm not a Human, and Hello Charlotte EP3: Childhood's End. We matched them by the tags players give Banished Monsters on Steam (Indie, Gore, Violent, Cute, and Horror): closest matches first, and among equally close ones the better-known games.

Mouthwashing
Shared: Horror · Indie · Psychological Horror

Dead by Daylight
Shared: Gore · Horror · Violent

Outlast 2
Shared: Horror · Gore · Psychological Horror

No, I'm not a Human
Shared: Indie · Horror · Psychological Horror

Hello Charlotte EP3: Childhood's End
Shared: Gore · Indie · Psychological Horror

People Playground
Shared: Gore · Violent · Indie

Lobotomy Corporation | Monster Management Simulation
Shared: Psychological Horror · Gore · Horror

FAITH: The Unholy Trinity
Shared: Indie · Horror · Psychological Horror

MiSide
Shared: Cute · Psychological Horror · Horror

CARRION
Shared: Gore · Indie · Horror

Buckshot Roulette
Shared: Horror · Indie · Gore

[Chillas Art] Night Delivery
Shared: Indie · Horror · Violent

Raging Loop
Shared: Indie · Psychological Horror · Gore

Manhunt
Shared: Gore · Violent · Horror

Fran Bow
Shared: Psychological Horror · Indie · Horror

Trepang2
Shared: Gore · Horror · Violent

Outlast
Shared: Horror · Gore · Psychological Horror

Neverending Nightmares
Shared: Indie · Gore · Horror

Amnesia: The Dark Descent
Shared: Gore · Horror · Psychological Horror

Tiny Bunny
Shared: Horror · Gore · Psychological Horror

Blair Witch
Shared: Indie · Horror · Violent

Hotline Miami
Shared: Violent · Indie · Gore

Resident Evil 7 Biohazard
Shared: Horror · Gore · Violent

Scorn
Shared: Gore · Horror · Psychological Horror