Market fund assets ballooned to $5.13 trillion for the week ending March 22 amid the widening crisis in the global banking.

Data compiled by Investment Company Institute show total assets went up during the week by $117.41 billion. Government assets added $131.84 billion to $4.26 trillion.

DEUTSCHE BANK SHARES SINK: WHAT TO KNOW

Meanwhile, prime funds went down $10.83 billion to $765.33 billion while tax-exempt money market funds slipped $3.61 billion to $106.95 billion over the same time. 

Nafis Smith, head of Vanguard’s taxable money markets, said, "Money market funds are typically used as a short-term savings instrument, an emergency reserve or general allocation to cash."

"Historically, when the Fed is raising rates, bank deposit rates will adjust much more slowly than will a money market fund’s rate," he added. "From that perspective, you might be better off with a money market portfolio."

FED RAISES INTEREST RATES A QUARTER POINT DESPITE RECENT BANKING TURMOIL

For the week ending on March 22, assets for retail money market funds grew by $15.21 billion to $1.86 trillion, according to the Investment Company Institute.

Among retail funds, government money market fund assets added 2.2% to $1.26 trillion. Prime money market fund assets slipped 1.8% to $506.55 billion, and tax-exempt fund assets fell 2.5% to $96.40 billion.

BANKS BOOST BORROWING FROM FED CRISIS LENDING PROGRAMS AMID GLOBAL TURMOIL

Over the same period, assets for institutional money market funds dropped $102.20 billion to $3.27 trillion. 

Among institutional funds, government money market fund assets grew 3.6% to $3 trillion, while prime money market fund assets dropped 0.7% to $258.78 billion, and tax-exempt fund assets went down 9.6% to $10.55 billion.