EU Banking Supervisors to Conduct Additional Review of Sovereign Bond Holdings

Senior officials from major European banking regulators stated that authorities are launching an additional risk review of sovereign bond portfolios worth trillions of euros. As yields on government bonds in some core European nations have risen to multi-year highs, Francois-Louis Michaud, Chairman of the European Banking Authority (EBA), emphasized the need to strengthen monitoring of banks' sovereign bond exposures. Speaking at the EBA's headquarters in Paris, Michaud said: 'Regulators are currently doing so.' He added that current risk exposures appear to remain 'within manageable limits,' noting, 'So far, we have not seen banks under pressure from current market developments, and we believe regulators are taking necessary measures.' (Sina Finance)