{"id":4347,"date":"2020-03-09T13:27:37","date_gmt":"2020-03-09T13:27:37","guid":{"rendered":"https:\/\/www.sportsnewsforyou.com\/?p=4347"},"modified":"2020-03-09T13:27:37","modified_gmt":"2020-03-09T13:27:37","slug":"barnier-to-target-shadow-banking","status":"publish","type":"post","link":"https:\/\/googmn.com\/?p=4347","title":{"rendered":"Barnier to target shadow banking"},"content":{"rendered":"<figure class=\"art\"><\/figure>\n<header>\n<h1>Barnier to target shadow banking<\/h1>\n<p class=\"subhead\">Commissioner delays plans for money-market funds until after the summer break.<\/p>\n<\/header>\n<footer class=\"meta\">\n<p class=\"byline\">European Voice<\/p>\n<\/footer>\n<footer class=\"meta\">\n<p>\n\t\t\tBy\t\t\t<span class=\"byline\"><br \/>\n\t\t\t\t<span class=\"vcard\">Ian Wishart<\/span>\t\t\t<\/span>\n\t\t<\/p>\n<p class=\"timestamp\"><time datetime=\"2013-07-17T22:53:00+00:00\">7\/17\/13, 10:53 PM CET<\/time><\/p>\n<p class=\"updated\">Updated <time datetime=\"2014-04-13T01:38:51+00:00\">4\/13\/14, 1:38 AM CET<\/time><\/p>\n<\/footer>\n<p>The European Commission is preparing legislation on money-market funds as part of wider plans to clamp down on financial transactions outside the normal regulated banking sector. Michel Barnier, the European commissioner for the internal market, was scheduled to put forward the package of&nbsp; \u2018shadow-banking\u2019 proposals before the summer break, but will now delay an announcement&nbsp; until September.&nbsp; <\/p>\n<p>Barnier has identified the regulation of money-market funds as a priority in his attempts to reduce the risks involved in shadow banking \u2013 traditionally a lightly regulated sector that also includes hedge funds, re-purchase agreements and securitisations. <\/p>\n<p>Money-market funds are used by investors and large companies to keep cash for a short period of time at low risk, and have traditionally been seen as a safe place for investments. However, since the start of the financial crisis they have come under strain. There were runs on funds \u2013 which hold about \u20ac1 trillion in the European Union \u2013 in the wake of the collapse of Lehman Brothers in 2008. <\/p>\n<p>Regulators say runs could trigger contagion and further shocks throughout the financial system. The International Monetary Fund and the Financial Stability Board \u2013 the international body set up by the G20 in 2009 to monitor the global financial system \u2013 have both urged regulators to tackle money-market funds. <\/p>\n<p>The Commission is expected to propose that certain types of funds \u2013 namely those that maintain a fixed share price \u2013 should keep a cash buffer to protect them from runs and financial shocks, similar to EU requirements on banks to keep capital and liquidity. <\/p>\n<p><H3>The way ahead <\/H3><\/p>\n<p>In addition to the draft legislation on money-market funds, Barnier will announce his next steps for regulating the rest of the shadow-banking industry, which includes activities such as securitisation, securities lending and repurchase transactions (know as \u2018repo\u2019) <\/p>\n<p>Shadow banking in the EU is worth more than \u20ac50 trillion, equivalent to about 30% of the total financial system. <\/p>\n<p>Financial market participants are nervous about the impact of any new rules. \u201cThe risk is that we end up with double regulation and over-regulation or regulation that is inconsistent,\u201d said Sidika Ulker, a director at the Association for Financial Markets in Europe. <\/p>\n<p>\u201cWhat is crucial is to see whether and how the European Commission incorporates different elements of shadow banking into legislation that has already been proposed.\u201d <\/p>\n<p>Defenders of shadow banking have argued that it had nothing to do with the financial crisis. They have warned that stricter regulation could impede the functioning of the financial system. <\/p>\n<\/p>\n<footer class=\"content-credits\">\n<h6>Authors:<\/h6>\n<dl class=\"vcard\">\n<dt class=\"credits-author\"><span class=\"vcard\">Ian Wishart<\/span>&nbsp;<\/dt>\n<\/dl>\n<\/footer>\n<p>Click Here: <a href='https:\/\/www.shopskm.com\/rugby-Jerseys\/NRL-Telstra-Premiership\/Roosters' title='cheap sydney roosters jersey'>cheap sydney roosters jersey<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Barnier to target shadow banking Commissioner delays plans for money-market funds until after the summer break. European Voice By Ian Wishart 7\/17\/13, 10:53 PM CET Updated 4\/13\/14, 1:38 AM CET The European Commission is preparing legislation on money-market funds as part of wider plans to clamp down on financial transactions outside the normal regulated banking&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4347","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/posts\/4347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4347"}],"version-history":[{"count":0,"href":"https:\/\/googmn.com\/index.php?rest_route=\/wp\/v2\/posts\/4347\/revisions"}],"wp:attachment":[{"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/googmn.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}