European Commission launches shadow banking onslaught

European commission

The European Commission today unveiled plans to clamp down on money market funds (MMFs) as it looks to rein in the shadow banking system.

New regulation could see MMFs based or sold in Europe forced to stockpile liquid assets, while funds that promise to pay investors a fixed share price may have to establish a capital buffer equivalent to 3% of their assets.

The proposed requirements are rooted in the commission's concern over the funds' susceptibility to runs, and the systemic risk that a fund

To continue reading...

You must be signed in to use this feature.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: