Answer: NBFCs, Investment Banks, Hedge Funds
Notes: The shadow banking system comprises non-banking financial companies, investment banks, and hedge funds. These entities conduct credit intermediation and liquidity services outside traditional, regulated banking channels. Shadow banking entities do not have access to central bank liquidity or deposit insurance. The Financial Stability Board monitors shadow banking to assess systemic risk. Scheduled commercial banks are not part of the shadow banking system, as they operate under stricter regulation.
