 Shadow banking and financial stability: European money market funds in the global financial crisisElias Bengtsson Journal of International Money and Finance, 2013, vol. 32, issue C, 579-594 Abstract: When the troubles in the subprime markets began surfacing 2007, developments unfolded rapidly in the European MMF industry. The industry suffered from asset price drops and investor redemptions. But the difficulties of the MMF industry also spread to the banking sector and contributed to general financial instability that prevailed in 2007–2009. In this article, we describe the main events and developments of the European MMF industry during the global financial crisis. Based on these observations, we analyse the transmission channels through which financial instability may spread from the MMF sector to the wider financial system. Insofar, our article contributes to the understanding of how other financial intermediaries and shadow banking may affect financial stability. A number of policy conclusions on shadow banking and financial stability are also provided. Keywords: Money market funds; Financial stability; Shadow banking; Contagion; Global financial crisis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:32:y:2013:i:c:p:579-594 DOI: 10.1016/j.jimonfin.2012.05.027 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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