Unlike money markets, the share prices of these short-term funds fluctuate, as the chart shows.

But through Monday, its short-term fund had taken in $134 million in July, he added.

The devaluations were caused by Mexico's overborrowing of short-term funds and printing too much money.

That has made the short-term mutual funds more attractive, he said.

He said the banks had sufficient other assets so that they should be able to continue to borrow short-term funds from the Fed.

To increase returns, the company also finances many of its long-term obligations with cheaper short-term funds - never a stable situation.

It acts as the debt instrument to be used by large corporate companies for borrowing short-term monetary funds in the money market.

This provides a way of raising short-term funds for general business purposes, often more cheaply than through the banking sector.

Fuji said it would supply short-term funds only if the loan was backed by collateral.

Since then some rates that banks pay to attract short-term funds, like those on certificates of deposits, have climbed significantly.