Document Type

Other

Publisher

Edith Cowan University

Place of Publication

Perth, Western Australia

School

School of Accounting, Finance and Economics

Comments

Allen, D.E., & Parwada, J.T. (2003). Effects of bank funds management activities on the disintermediation of bank deposits. Perth, Australia: Edith Cowan University.

Abstract

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.

 
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