Asset managers should face minimum cash levels – ECB paper
Researchers say macro-prudential measure would improve market allocation of financial resources
Macro-prudential authorities should impose minimum cash buffers on asset management firms to improve the allocation of financial resources, a working paper published by the European Central Bank argues.
In Market failures in market-based finance, Giovanni di Iasio and Dominika Kryczka present a model featuring institutional investors, asset management firms and banks. In the model, institutional investors such as insurance companies and pension funds have liabilities that offer guaranteed
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