European banks have a number of ways of obtaining US dollars including:   short-term debt issuance, including to money market funds;    deposits;    secured borrowing;    swapping euros for US dollars through the swap market;    from the Fed or ECB, including via the US dollar swap line.
Exacerbating European banks’ US dollar funding pressure has been a pull-back by US money market funds (MMFs) from holding debt issued by these banks.11 These funds invest in highly rated short-term debt and that issued by European banks has traditionally accounted for a large share of their assets.