Competitive Advantages of Shadow Banking Industry: An Analysis Using Porter Diamond Model

<p>This paper tries to find out why shadow banking system has become so competitive in the global financial system and how it can be controlled. For this reason we use Porter’s diamond model to find the competitive advantages of shadow banking. Based on the results of this study it can be concluded that factor conditions, chance and government do not contribute to the competitiveness of shadow banking industry. On the other hand the results suggested that related and supporting industries, firm strategy, structure and rivalry, and demand conditions contribute to the competitiveness of shadow banking industry. It is important to regulate the activities of shadow banking industry in order to prevent this industry from creating systemic risk.</p>

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Systemic Risk and Shadow Banking System

Handbook of Financial Risk Management ◽

10.1201/9781315144597-8 ◽

2020 ◽

pp. 453-487

Author(s):

Thierry Roncalli

Keyword(s):

Systemic Risk ◽

Banking System ◽

Shadow Banking ◽

Shadow Banking System

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Global Systemic Risk: What's Driving the Shadow Banking System?

SSRN Electronic Journal ◽

10.2139/ssrn.2692076 ◽

2015 ◽

Author(s):

Robert F. Engle ◽

Fariborz Moshirian ◽

Christopher Wong

Keyword(s):

Systemic Risk ◽

Banking System ◽

Shadow Banking ◽

Shadow Banking System

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Systemic Risk in the Chinese Shadow Banking System: A Sector-Level Perspective

Emerging Markets Finance and Trade ◽

10.1080/1540496x.2016.1110465 ◽

2015 ◽

Vol 52 (2) ◽

pp. 475-486 ◽

Cited By ~ 3

Author(s):

Guangning Tian ◽

Jianjun Li ◽

Ying Xue ◽

Sara Hsu

Keyword(s):

Systemic Risk ◽

Banking System ◽

Shadow Banking ◽

System A ◽

Shadow Banking System

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Alcune considerazioni sullo Shadow Banking System

STUDI ECONOMICI ◽

10.3280/ste2011-104004 ◽

2012 ◽

pp. 69-87

Author(s):

Figuera Stefano

Keyword(s):

Financial Crisis ◽

Systemic Risk ◽

Financial Intermediation ◽

Banking System ◽

Shadow Banking ◽

Production Theory ◽

Recent Period ◽

Capitalist Economy ◽

Efficient Control ◽

Shadow Banking System

The financial intermediation system has been characterized by the emergence of new subjects and instruments modifying its organization. The development of the shadow banking system parallel to the traditional one has led to the demand, during the recent period of financial crisis, for a more efficient control to weather the growing systemic risk. This changing context leads the Author to consider some essential profiles of the monetary nature of the capitalist economy. Specifically, a need is perceived to reinterpret recent events in the light of the credit nature of money and the endogenous character of its supply, aspects on which scholars of the Keynesian school have long focused their attention. The Author considers particularly useful the indications deriving from the monetary production theory, especially with reference to the distinction among the various forms of financing, to understand such changes and adopt suitable strategies to handle them.

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The Research on Shadow Banking System in China

Journal of Economic Science Research ◽

10.30564/jesr.v2i4.1152 ◽

2019 ◽

Vol 2 (4) ◽

Author(s):

Xu Chen ◽

Shuwen Chen

Keyword(s):

Commercial Banks ◽

Banking System ◽

Financial System ◽

Financial Resources ◽

Shadow Banking ◽

Supply Side ◽

Special Period ◽

Fundamental Change ◽

Shadow Banking System ◽

Global Financial System

The shadow banking system has grown stronger in the process of evading supervision. Together with traditional commercial banks, it has become an important participant in the financial system, which has caused a fundamental change in the structure of the global financial system. As an exogenous reform force in China’s special period, Shadow Bank has become an important channel for financial resources to “disconnect from reality”. Despite the lack of substantial securitization, China’s shadow banking system has developed rapidly. This paper analyzes the development motivation.This paper believes that the scope of China’s shadow banking system can be defined according to the nature of the fund supply side.

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Non-banking financial intermediation and phenomena of shadow money in modern economy

Finance and Credit ◽

10.24891/fc.27.8.1694 ◽

2021 ◽

Vol 27 (8) ◽

pp. 1694-1709

Author(s):

Vladimir K. BURLACHKOV

Keyword(s):

Commercial Banks ◽

Financial Intermediation ◽

Banking System ◽

Banking Regulation ◽

Developed Countries ◽

Bank Credit ◽

Shadow Banking ◽

Economic Agents ◽

Shadow Banking System ◽

Lending Activity

Subject. The article addresses the non-banking financial intermediation (shadow banking system) as it is successfully expanding nowadays both in developed countries and emerging economics. Objectives. The study aims at conducting a comprehensive analysis of the specifics of non-banking financial intermediation, revealing its impact on economic agents’ activities, causes and consequences, and elaborating the methodological framework for effectiveness of modern monetary policy. Methods. I employ methods of scientific abstraction, induction, deduction, synthesis, and comparative analysis. Results. In the modern national economy, along with the money, created by the central bank and commercial banks, there are highly liquid financial instruments called shadow money. The scope of its application is shadow banking (financial intermediation) outside the banking system. The use of shadow money is caused by high demand for credit resources. Conclusions. The high activity of shadow banking and increased turnover of shadow money resulted from a transfer to Basel standards of banking regulation in the 1990s, which affected the lending activity of commercial banks. Under these conditions, the demand for loans provided by non-bank credit and financial institutions increased. The market of non-bank credit products was formed. However, the process of lending in the shadow banking is associated with high risks and non-stability of shadow money, widely used in this sphere.

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