Therefore when liquidity dries up, the scissors effect is terrible: on the one hand asset values drops very quickly - far more than conventional banks; on the other side of the balance sheet deposit
withdrawal is much faster.
However, the task force believes that on-balance sheet deposit
taking and investing in instruments of up to one year could be consistent with an acceptable level of risk.
The decrease is primarily attributable to the migration of off-balance sheet sweep accounts to other higher yielding alternatives, including on-balance sheet deposit
products, as the yields on the sweep accounts have declined in relationship with short-term treasury yields, a reduction in investment assets, and declines in equity market values during the period.
The decrease is primarily attributable to off balance sheet sweep accounts migrating to other higher yielding alternatives, including on balance sheet deposit
products, as the yields on the sweep accounts have declined recently as short-term treasury yields have declined.
The industry includes private lending, trust loans, credit and non bank institutions and banks' off balance sheet deposits
, which are also known as wealth management products.
DDM is a virtual marketplace of participating banks that enables them to acquire balance sheet deposits
, send deposits off their balance sheet, and exchange deposits with other banks, all with daily liquidity.
Total customer funds, which include assets under management and on-balance sheet deposits
, grew by 3% to #122bn (31st December 1999: #118bn).
Total customer funds, which include assets under management and on balance sheet deposits
, grew by 4% to #73bn (31st December 1999: #70bn).