In the funding markets, institutional money market AUM and term deposits at foreign banks decline as US money market regulation looms. Treasurers are often not permitted to put cash into instruments that have a floating NAV - which is what will happen to prime money funds. Prime money funds, on the other hand, bought CDs or CP from foreign banks who need dollars. As institutional treasurers pull out of prime funds, foreign banks lose this source of dollar funding.
Source: Deutsche Bank