Sovereign debt: a risk-free asset?
Published on Tuesday, February 2, 2016 | Updated on Wednesday, February 7, 2018
Sovereign debt: a risk-free asset?
Summary
Several voices have been raised recently in favour of eliminating the zero weighting of sovereign debt in banks' capital consumption, with the principal argument being that this treatment generates sovereign risk contagion to banking risk, and is a cause of the dangerous negative feed-back loop observed in the recent financial crisis.
Geographies
- Geography Tags
- Europe
Topics
- Topic Tags
- Financial Regulation
- Banks
Authors
María Abascal
Santiago Fernández de Lis
BBVA Regulation - Head of Regulation
Documents and files
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