Identifying the Shadow Component in the Banking Sector

Abstract

The subject of research in the article is the process of shaping the shadow capital in the shadow banking sector. Its goal is to identify specific features of shadow economic relations leading to shadow capital shaping in the Russian banking sector. During the research such methods as induction, deduction, historic analysis and synthesis were used. The authors define the functional aim of the shadow capital in the Russian banking sector. Firstly, in the short-term period it realizes the key feature of capital as an economic category by bringing short-term profit. Secondly, in the process of movement and accumulation the shadow capital can be re-invested in illegal business. Results of the research can be used in national economy, including the shadow banking sector. The authors came to the conclusion that shadow capital functioning has dual nature (positive/negative). Being an entity-object system it has positive side too. The positive side in shadow capital shaping consists in the essence of the economic category of capital, which implies its movement and accumulation.

Keywords

• shadow banking sector
• capital
• shadow capital
• finance structuring
• accumulation
• movement
• entity-object system