Investors in these markets include money market funds, corporations and other large holders of excess cash seeking a safe return in the short term, frequently no longer than overnight. Borrowers in money markets include banks, securities dealers and other financial companies, nonfinancial corporations, and governments.
By linking investors seeking a safe return with borrowers needing short-term credit, money markets do what commercial banks have always done, but without deposit insurance and other aspects of the safety net provided for regulated depository institutions.