FT: Basel III to hit money fund sector
08 May 2011
Industry commentators believe the forthcoming Basel III regulations will encourage banks to lure retail investors out of money market funds and into deposit accounts in order to shore up their capital ratios.
Further, the pressure on banks to migrate to longer-term sources of funding could drastically reduce the volume of short-dated commercial paper they issue, removing one of the most important holdings of money market funds.
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