These developments gave banks the opportunity to move from deposit funding to various forms of funding through markets, as a way of diversifying funding sources or reducing funding costs (Graph 10). 10  BIS Review 83/2010  The growth of the superannuation industry, following government decisions to promote compulsory superannuation, probably contributed to this trend.
Firstly, it meant households became less inclined to hold their savings as bank deposits, and second, the pool of funds created by superannuation increased demand for securities such as bank securities. Within this trend away from deposits to funding through securities markets, there were also forces that resulted in banks increasing their use of offshore funding.