Therefore, any difference in regulation and supervision should be based on the risks posed by different products and services. Second, there should not be unnecessary barriers to competition in the market beyond those justified by risk considerations.
Since the onset of the crisis, the key money market trends affecting bank funding patterns were, for the US, the tensions in the secured markets (known as a “run on repo”) and, for the euro area, a shift from unsecured towards secured funding, as well as a fragmentation of money markets along national lines, further exacerbated by the emergence of the sovereign debt crisis.