It is important to note the increasing role of banking industry in the growth of mutual funds. The extent of the involvement can be attributed to the close relationship between banks with security companies which issued mutual funds. The closeness of this relationship makes it difficult to distinguish between activities of banks from those of other financial institutions.
This phenomenon in bank operation of the banking system and the coming strengthening of the regulatory framework for collateralized securities products linked to the banking system appear likely to take bank industry to a new dynamic that would lead toward a more universal characteristics of banking practices.