United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-09-22 monographic deposited born digital 22 p. GA 1.13:GGD-95-230 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-230 P0b002ee18039a968 f:gg95230 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GGD-95-230 machine generated eng fdlp REPORT GAOREPORTS-GGD-95-230 GGD-95-230 Bank deposits Mutual funds Deposit funds Interest rates Securities Lending institutions Funds management Economic analysis Investments Credit Other Written Product GGD Pursuant to a congressional request, GAO examined whether the movement of funds from bank deposits into mutual funds affects the availability of credit for residential, consumer, or commercial purposes.<p/>GAO found that: (1) the amount of money in mutual funds grew from $994 billion at year-end 1989 to $2,172 billion at year-end 1994, mainly due to an increase of net customer inflows; (2) during the same period, bank deposits declined from $3.55 billion to $3.46 billion; (3) as much as $700 billion of the growth in mutual funds may have come at the expense of bank deposits between 1990 and 1994; (4) the movement of money into mutual funds has resulted partly from the relatively lower interest rates paid on bank deposits, but this should have little effect on the total supply of loanable and investable funds, since mutual funds also lend or invest a major portion of the funds they receive; (5) there was insufficient data on whether the different categories of borrowers were affected by the shift of money from bank deposits to mutual funds; (6) all categories of borrowers have recently increased their access to financing obtained through the securities markets; and (7) flows of deposits out of smaller banks could reduce the availability of finance for small businesses whose primary source of finance is loans from such banks. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-230/html/GAOREPORTS-GGD-95-230.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-230/pdf/GAOREPORTS-GGD-95-230.pdf GAO/GGD-95-230 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-230 Other Written Product GAO/GGD-95-230; Mutual Funds: Impact on Bank Deposits and Credit Availability; Bank deposits Mutual funds Deposit funds Interest rates Securities Lending institutions Funds management Economic analysis Investments Credit