Italian Bonds at Risk From Efforts to Break Bank-Sovereign Nexus
- Nations fail to agree on limits to govt debt holdings by banks
- Measures likely to kick in only after ECB QE ends: ING
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Bonds from peripheral countries may be the most vulnerable to Europe’s effort to limit banks’ sovereign-debt holdings.
As European Union nations wrangle over ways to integrate and safeguard the region’s banking system years after the euro debt crisis, a major point of contention is how to deal with the government bonds banks have on their balance sheets.