The volume of bonds that banks in Greece, Portugal, Spain, Italy and Ireland have issued so far and that are only guaranteed by their home states amounts to 208.7 billion euros ($265.4 billion), Welt am Sonntag reported, citing its own research.
The banks have made “brisk” use of the option to deposit those bonds as collateral at the European Central Bank, the newspaper cited several unidentified central bankers as saying, without specifying a figure.
The central bankers said the ECB may at any time limit the acceptance of such covered bonds, Welt am Sonntag said, adding that the ECB declined to comment when and how such rules may be introduced.
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