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MNI BRIEF: BOE Bailey: Money Market Fund Reform Needed

LONDON (MNI)

Bank of England Governor Andrew Bailey said that while the financial system had, for the most part, withstood the Covid shock, money market funds had again proven to be a weak spot. Speaking at an ISDA conference he highlighted a fundamental weakness of these funds, which claim to be 'cash-like' vehicles but can't supply cash in a crisis.

Bailey foresaw one solution whereby funds had to be transparent about how close they actually are to cash accounts, saying "We may end up with some MMFs becoming more cash-like and some less cash-like."

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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