Questions and Answers
Q: What is the ABA Securities Association?
A: The ABA Securities Association (ABASA) was formed to develop policy and provide advocacy for banks underwriting and dealing in securities, proprietary mutual funds and derivatives. ABASA's members are institutions with Section 20 affiliates and regional banks with extensive distribution channels for securities, mutual funds and insurance products. ABASA is a separately chartered trade association and an affiliate of the American Bankers Association.
Q: Why do banks need to be concerned with securities?
A: Banking is evolving into a global financial services industry offering a wide range of investment products (including deposit instruments, credit enhancements, securities and annuities) to a wide range of customers. There are 25 U.S. banking companies with Section 20 affiliates, up from 21 institutions in 1994. Greater emphasis is being placed on non-traditional sources of revenue as traditional banking activities are being opened to non-bank entities. Consumer investments will continue to grow, as will the demand for product diversification at the retail level where banks have a strong franchise.
Q: How many banks or affiliates sell mutual funds?
A: In 1996, 3,641 U.S. insured banks, or about three in 10 sold mutual funds or annuities to their customers. Already 3,325 institutions sell mutual funds with 115 banks selling proprietary mutual funds. Assets in bank-managed mutual funds totaled $454 billion. That's 15 percent of the $3 trillion mutual fund market, up from the 8.5 percent share banks claimed in 1992. Banks managed 2,602 of the 9,250 mutual funds as of June 30, 1996.
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Questions? Please contact Christen deMedeiros for more information.
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