Shadow Banking

Consider the following statements about the Shadow Banking:

  1. The shadow banking system is made up of financial entities which have the same functions as traditional banks but which are subject to little, if any, regulation.
  2. Shadow banking includes money market funds, private equity funds, hedge funds, securitisation, securities lenders, and structured investment vehicles.

Choose the correct answer from the codes given below:

Only 1
Only 2
Both 1 and 2
Neither 1 nor 2