Bank-like activities undertaken by non-bank financial firms like investment banks and hedge funds,but without regulatory oversight or protection,are classified as traditional banking.

Question

Quizplus · Accepted Answer

The statement is false. Bank-like activities undertaken by non-bank financial firms without regulatory oversight or protection are classified as shadow banking, not traditional banking. Traditional banking is associated with banks that offer traditional services like taking deposits and making loans, which are subject to regulatory oversight and protection.

Bank-Like Activities Undertaken by Non-Bank Financial Firms Like Investment Banks