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

Arash Riasi


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.

Full Text:



Copyright (c) 2015 Arash Riasi

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Business Management and Strategy  ISSN 2157-6068

Copyright © Macrothink Institute 

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

If you have any questions, please contact