There is a 'good' reason for EU banks to hold their own country's sovereign debt
Saka, O.
(10 January 2020)
There is a 'good' reason for EU banks to hold their own country's sovereign debt.
LSE Business Review.
Is it possible to attribute the banks' home bias in sovereign exposure to something beyond their externally-imposed (such as moral suasion) or internally-distorted (such as risk-shifting) incentives? Despite the so-called doom loop between the two, could the relationship of banks with their domestic governments have an underexplored silver lining?
| Item Type | Blog post |
|---|---|
| Copyright holders | © 2020 The Author(s) |
| Departments | LSE > Research Centres > Financial Markets Group > Systemic Risk Centre |
| Date Deposited | 28 Feb 2020 |
| URI | https://researchonline.lse.ac.uk/id/eprint/103620 |