Pub. 7 2017-2018 Issue 2

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S Money Market Mutual Fund Reform: Money on the Move FEATURE ARTICLE GLENN MARTIN REGIONAL DIRECTOR, PROMONTORY INTERFINANCIAL NETWORK In Promontory Interfinancial Network’s Q3 2016 Bank Executive Business Outlook Survey, bankers indicated that, so far, little impact has been felt from the change in money market fund rules when it comes to increasing deposit availability. T he October 2016 enactment of the new SEC r u le s gover n i ng money market mutual funds (MMMFs) has transformed the money fund indus- try. The change has led to a dramatic shift in fund placements from prime funds to gov- ernment funds and could have an impact on the overal l funding market for banks. Data fromCraneData’s MoneyFund Intelligence shows that, betweenOctober2015andOctober 2016, more than $1 trillion moved from prime funds to government funds. It appears thatmost investors stayed in themoney fundmarket, largely transferring their assets to government funds. Only about $30 billion moved elsewhere.