Regulators again try to rein in money market funds’ systemic risks

Vanessa Robert and Marina Cremonese of the Funds and Asset Management team discuss new money market fund regulations proposed in the US and EU after a material flight to quality shook short-term credit markets last year. Plus, Svetlana Pavolva of the Banking team explains the significant social risks facing banks in Commonwealth of Independent States countries.Inside this episode:Svetlana Pavolva of the Banking team explains the significant social risks facing banks in Commonwealth of Independent States countries. (begins at 3:26)Vanessa Robert and Marina Cremonese of the Funds and Asset Management team discuss new money market fund regulations proposed in the US and EU after a material flight to quality shook short-term credit markets last year. (begins at 10:31)Related content:Banks – Commonwealth of Independent States: “Civil unrest and demographic changes pose substantial social risks - Banks in the region are facing substantial social risks stemming from demographic and societal trends, as well as customer relations.Money Market Funds – Cross Region: Money market funds face more rule changes after coronavirus turmoil - Regulators intend to review MMF rules this year after the financial market impact of the coronavirus crisis in March 2020 raised concerns about the sector's systemic risk.Money Market Funds – US: Funds face bear market on flight to quality - Money market funds face two main risks: uneconomic yields on Treasury and government funds and sharp NAV declines for credit-sensitive funds.