Shadow Banking and its Effects on International Markets: A Comparison of U.S., Russia, and Chin

This dissertation gets involved with the emerging trends in international money markets by delving into the shadow banking as market distortion factor for international markets. The main concentration was the effects of the shadow banking practices, especially, as a comparative analysis of the United States of America, Russia, and China. The consideration on these countries was that they form part of the cohort of top international economic giants. Their involvement in the shadow banking system would, therefore, have a significant influence on the general landscape of the international markets. The paper sought to establish the effects of shadow banking operations on the three economic players as well as other key players in the international market environment. For several years after the introduction of shadow banking, central banks of countries across the global scene have struggled to support the banking system while trying to ensure that their balance sheets maintain impressive outlook. The fears of these institutions call for the rigorous study into the various ways in which the shadow banking system can affect operations in central banks and, consequently, the countries involved. The research entailed a qualitative approach that considered the information acquisition strategies to help the international market in stabilizing, even in the presence of the shadow banking systems. The choice of the U.S., Russia, and China as the key participants in the comparative study granted the research expedition an opportunity to develop a strong discussion point for the benefit of the global business environment. The result of the qualitative analysis of the three countries and how the effects of the shadow markets affect their presence in the international markets indicated that a great benefit would come from the banking system, though, there would be a need for structured and cautious involvement to safe gourd the mainstream banking environment. Recommendations for future expeditions include the needs for proper legislative involvement in such a manner that shadow banking institutions can get special control and regulations from selected bodies. That would ensure that the international market does not suffer the lack of proper engagement mechanism with shadow banking due to loss control and regulation from top financial authorities. Establishing a unitary mechanism that enhances collective control would also stand as a key step in ensuring the financial relevance of the international financial markets.