EU steps up regulatory pressure on ‘shadow banks’

The European Commission adopted a Communication (pre-legislative consultation document) on the 4 September 2013 on shadow banking and proposed new rules for money market funds (MMFs).

The Communication is a follow-up to the 2012 Green Paper on Shadow Banking. It summarises the work undertaken so far by the Commission and sets out possible further actions in this important area.

The first of these further actions - the proposed new rules for money market funds – was also unveiled on te 4 September 2013 and aimed to ensure that MMFs can better withstand redemption pressure in stressed market conditions by enhancing their liquidity profile and stability.

European Commission: RAPID: Press Release, IP/13/812: Commission’s roadmap for tackling the risks inherent in shadow banking http://europa.eu/rapid/press-release_IP-13-812_en.pdf

European Commission: The EU Single Market: Financial services: Shadown banking http://ec.europa.eu/internal_market/finances/shadow-banking/index_en.htm

European Commission: RAPID: MEMO/13/764: New rules for Money Market Funds proposed – Frequently Asked Questions http://europa.eu/rapid/press-release_MEMO-13-764_en.pdf

European Commission: RAPID: MEMO/13/763: Communication on shadow banking: frequently asked questions http://europa.eu/rapid/press-release_MEMO-13-763_en.pdf

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