Numerous companies and individuals have shifted money from time deposits into
demand deposit accounts.
Banks would be able to sweep balances from demand deposits into
these twenty-four-transaction MMDAs each night, pay interest on them, and then sweep them back into demand deposits the next day.
For now, large depositors are likely to limit their responses to demanding that banks put up collateral in case of a bank failure in exchange for not pulling out savings, or to shifting time deposits into
time deposits with shorter maturities, it said.
In recent years, developments in computer technology have allowed depositories to begin sweeping consumer transaction deposits into
Japanese banks fear their deposit insurance premiums under the state-run deposit insurance system will soar if a shift of bank deposits into
ordinary deposits continues.
Many of the political, policy, financial, and legal institutions concerned with banking issues will be preoccupied, for the foreseeable future, with the details of this issue because SAIF institutions will continually strive to move deposits into
BIF and BIF institutions will attempt to thwart such movements.