Daniel Gros, (2017), “Banks as buyers of last resort for government bonds”, VoxEU, 27 Νοεμβρίου
A key remaining issue for the completion of the Banking Union is the concentrated exposure of banks in many countries to their own sovereign. This column argues that the belief that banks should be allowed to buy large amounts of their own sovereign so they can stabilise the market in a crisis is mistaken for two reasons: banks are only intermediaries, and banks have higher cost of funding. The overall conclusion is that governments should make it more attractive for households (and other real money investors) to hold government debt directly.
Σχετικές Αναρτήσεις
- Csullag, Balazs, Danielsson, Jon, Macrae, Robert, (2016), «Why it doesn’t make sense to hold bonds», VoxEU, 27 Ιουνίου
- Huttl, Pia, Goncalves Raposo, Ines, (2017), «An update: Sovereign bond holdings in the euro area – the impact of QE», Bruegel, 9 Μαρτίου