Bank-like activities undertaken by depository financial institutions like commercial banks,with regulatory oversight and protection,are said to be operating as a shadow bank.

Question

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Shadow banking refers to financial institutions that engage in banking activities, but are not subject to the same regulatory oversight and protection as traditional banks. However, if depository financial institutions like commercial banks are engaging in similar activities, but are still subject to regulatory oversight and protection, then they are not considered part of the shadow banking system.

Bank-Like Activities Undertaken by Depository Financial Institutions Like Commercial Banks,with