4  BIS central bankers’ speeches  The first change addresses potential disruptions coming from money market funding of shadow banks – money market mutual funds and other investments that are allowed to maintain a fixed net asset value of $ should be required to have floating net asset values.
Shadow banks’ reliance on this source of short-term funding and the associated threat of disruptive runs would be greatly reduced by eliminating the fixed $ net asset value and requiring share values to float with their market values. The second recommendation addresses potential disruptions stemming from the shortterm repurchase agreement, or repo, financing of shadow banks.