Banks and asset managers running money-market funds may be forced by the European Union to raise capital buffers and hoard easy-to-sell assets as part of a regulatory push to tame the $4.7 trillion global industry.
Michel Barnier, the EU's financial services chief, said such buffers would have dealt with most difficulties suffered by fixed share-price funds in the wake of the 2008 financial crisis, as he rejected calls for an outright ban from German Finance Minister Wolfgang Schaeuble, his French counterpart Pierre Moscovici and a group of EU regulators.
Money market funds "are not always stable, and in a period of tension they can threaten the financial system, including the banks," Barnier told reporters in Brussels. He said "a formal and brutal ban" of fixed share-price funds sought by some regulators was unnecessary and would hamper investors.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
