BoE's Bailey calls for fix to ‘dangerous gap’ in money market rules

LONDON: Bank of England Governor Andrew Bailey said regulators needed to come up with reforms that address vulnerabilities in the money market fund sector which were exposed by the "dash for cash" at the onset of the coronavirus pandemic last year.

"The dash for cash provided an unwelcome reminder that the post-financial crisis did not finish the job and left a dangerous gap in our exposure to the risk of financial instability," Bailey said in a speech to the International Swaps and Derivatives Association.

"We must finish the task this time," he said.