Theory And Practice Of Money-market Funds

MMF originated, developed and became mature in the western countries; especially in America, it got full development both theoretically and practically. After the introduction of MMF, the discussing and practice of MMF become more and more urgent. And the fiercest one of these discussing among the insiders is about weather banking should take part in the the filed of MMF management; therefore, it becomes more and more necessary and significant to make a study of MMF management in banking. The present paper attempts to begin with the national and foreign theories of MMF and its development history. By highlighting the importance of MMF in the field of domestic finance, this paper will move onto the analysis of whether banking should play a role in MMF management and how to manage it. This is the focus of the present study, with the aim to invite much more attention to the necessity and feasibility for banking to have an influence on MMF. On the basis of this, the present paper can be divided into five chapters. The first chapter begins with the fundamental theories of MMF. First, it analyzes the history and the present development of MMF in America, and then extends the discussion to the situation in China. Finally, there is a brief summary of these theories. The second chapter mainly discusses the relationship between MMF and finance. It will talk about the capital market and monetary market, with the purpose of indicting the introduction of MMF will turn out a great opportunity and challenge for the entire financial business. The discussion also paves the way for the following analysis on the relationship between banking and MMF. The third chapter, which is the core part of this paper, analyses the feasibility and necessity of MMF management. The model of SWOT and the approach of cost-and-income analysis are adopted in this part. The forth chapter mainly explains the way how to set up MMF by banking and how to mange it. The last chapter analyses the problems in supervising MMF caused by banking involved in MMF. It mainly discusses how to realize self-supervision, marketing-supervision and government-supervision from micro, medium and macro aspects.