BANKING AFFAIRS

Detailed explanation-1: -Thus, shadow banks comprise entities which conduct financial intermediation directly, such as finance companies or NBFCs, and entities which provide finance to such entities, such as mutual funds.

Detailed explanation-2: -The shadow banking system is a term for the collection of non-bank financial intermediaries (NBFIs) that provide services similar to traditional commercial banks but outside normal banking regulations.

Detailed explanation-3: -Nonbanking financial institution. Anonbank financial institution (NBFI) is a financial institution that does not have a full banking license and cannot accept deposits from the public.

Detailed explanation-4: -Shadow banking is a term used to describe bank-like activities (mainly lending) that take place outside the traditional banking sector. It is now commonly referred to internationally as non-bank financial intermediation or market-based finance. Shadow bank lending has a similar function to traditional bank lending.