Money market funds (MMF)

Definition

Subsector of the economy consisting of all financial institutions and quasi-corporations, except those classified in the ‘central bank’ and ‘Deposit-taking corporations except the central bank’ subsectors, that are primarily engaged in financial intermediation.

Further information

The activity of the entities included in this subsector consists of issuing shares in investment funds as close substitutes for deposits, and, on their own account, making investments mainly in shares in money market funds, debt securities with short-term maturity, and/or deposits.

In general, the financial intermediaries classified in this subsector are investment funds, including investment companies and other collective investment institutions whose shares or units are close substitutes for deposits.

It should be noted that the term ‘money market funds’ may refer not to the subsector, but to entities included in it, specifically, those collective investment institutions whose investment is materialized in money market assets.

Money market funds correspond to subsector S.123 of the sectorisation of the economy, according to the European System of Accounts 2010.