The shadow banking system is:
A) an underground banking system that is largely illegal.
B) a system that is outside the regulation system of commercial banks but provides many of the same banking services.
C) a secondary system of commercial banks that backs up the primary system of commercial banks.
D) the branches of a nation's banks that operate in foreign countries.

Question

Quizplus · Accepted Answer

The shadow banking system consists of financial intermediaries involved in facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight. This system still provides services similar to traditional banks, like loans and credit, but operates outside the regular banking regulations.

The Shadow Banking System Is