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Article: How are mutual funds changing banks? A third of all mutual funds are now sold through banks. How is this trend affecting bank profitability, the deposit base, and banks' image? (includes related article on small banks and mutual fund offerings) (Cover Story)
- Article from:
- ABA Banking Journal
- Article date:
- June 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A third of all mutual funds are now sold through banks. How is this trend affecting bank profitability, the deposit base, and banks' image?
Banks have plunged into the mutual fund industry and are making more than ripples. About 3,500 banks now offer mutual funds and the number is growing.
Ten years from now, will the bankers who made the decision to enter this business be patting themselves on the back or will they have some regrets?
That's a highly speculative question, but worth asking nonetheless. For a speculative answer, one can consider the opinions of industry observers and look at what mutual funds have done for (or to) banks so far.