Money-Market Funds Could Get BOE Backstop Access, Says Barclays
- Central bank could open up emergency liquidity facilities
- Regulators are looking at MMFs after March 2020 dash-for-cash
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The Bank of England could give money-market funds access to some of its liquidity facilities amid concerns the industry amplifies episodes of market stress, according to Barclays Plc.
The central bank and the UK’s Financial Conduct Authority are looking into reforming MMFs after they came under severe strain at the start of the pandemic panic two years ago. It forms part of a global regulatory push to better regulate the investment vehicles.