The number of money-market funds in the euro area has dropped 34 percent in the past two years, the European Central Bank said.
There were 987 funds in the 17-nation region on Jan. 1, 519 fewer than two years earlier, the Frankfurt-based ECB said in a report today. The contraction continued during 2012, most prominently in Luxembourg and France, which recorded declines of 128 units and 84 units respectively. The total number of monetary financial institutions, including commercial banks, was 7,059 at the start of this year, 474 fewer than a year ago.
The ECB said the “substantial decrease” in money-market funds is partly due to a new definition of them in a guideline that is now “more closely in line with that used for supervisory purposes.”