TY  - JOUR
AU  - Kane,Edward J.
TI  - What is the Value-Added for Large U.S. Banks in Offering Mutual Funds?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5111
PY  - 1995
Y2  - May 1995
UR  - http://www.nber.org/papers/w5111
L1  - http://www.nber.org/papers/w5111.pdf
N1  - Author contact info:
Edward J. Kane
2325 E Calle Los Altos
Tucson, AZ 85718
Tel: 520-299-5066
E-Mail: edward.kane@bc.edu
AB  - This paper argues that an implicit deposit-insurance credit enhancement is extended to any nondeposit savings vehicle offered by a very large bank.  This unpriced credit enhancement helps to explain the preference revealed by very large U.S. banks for gearing up to offer mutual funds instead of developing index-linked deposit products.  It also explains why large banks have been more eager than small banks to offer mutual funds and why bank mutual funds could be priced to grow at a time when bank deposits were being priced to shrink.
ER  -