The decision was spurred by liquidity coverage requirements under Basel III, PNC spokesman Fred Solomon told American Banker. The bank disclosed the wind-down plan in a Sept. 5 filing with the Securities and Exchange Commission.
PNC, based in Pittsburgh, has administered Market Street Funding since 1995. PNC said that it will continue serving clients' securitization needs through its asset-backed finance business.
Market Street Funding had $5.9 billion of commercial paper outstanding at the end of the second quarter, according to the SEC filing. PNC plans to pay for the vehicle's commitments and outstanding loans through "diversified funding sources," according to the filing.
PNC said the wind-down, which it expects to have no meaningful impact on its financial condition, should be completed by the end of the fourth quarter.