Effects of Bank Funds Management Activities on the Disintermediation of Bank Deposits
Edith Cowan U, School of Finance and Business Econ.
26 Pages Posted: 22 Feb 2002
This study investigates the alleged disintermediation of banks' traditional deposit-taking in favour of investment management activities. Using data on Australian bank-affiliated funds and a nine-year record of the parent banks' liability balances, this study finds that managed funds do not displace bank liabilities. Prudential capital adequacy requirements dissuade banks from using in-house managed investments as indirect conduits for raising funds in the same manner as deposit-taking.
Keywords: Bank deposits; Managed funds; Disintermediation
JEL Classification: G21, G23
Suggested Citation: Suggested Citation