How to Build Out a Shadow Banking Practice in Emerging Markets

An anathema to many regulators, shadow banking represents a multi-trillion opportunity for banks and the well-heeled alike. For finance companies looking to compete in places like South Africa, Russia, China, Chile, and Indonesia, shadow banking could provide an important beach head in trade finance, mortgage securitisation and other areas. In this brief, we mine the data – to find the most lucrative opportunities for shadow banks (and shadow bank wannabes) to earn in emerging markets. We also show how emerging markets can take advantage of ever-increasing regulation in the OECD to steal away clients.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2429583