Open AccessCompetitive Advantages of Shadow Banking Industry: An Analysis Using Porter Diamond Model
Author(s) -
Arash Riasi
Publication year - 2015
Publication title -
business management and strategy
Language(s) - English
Resource type - Journals
ISSN - 2157-6068
DOI - 10.5296/bms.v6i2.8334
Subject(s) - diamond model , shadow (psychology) , rivalry , order (exchange) , business , industrial organization , competitive advantage , government (linguistics) , banking industry , marketing , economics , commerce , finance , microeconomics , psychology , linguistics , philosophy , political science , law , china , psychotherapist
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.