MILANO, April 17 (Reuters) – Italy opposes any proposals to abolish the zero-risk weighting government bonds currently carry on banks’ balance sheets, Economy Minister Giovanni Tria said on Wednesday, adding the move would disrupt markets.

“Such changes would alter regular market functioning,” Tria told a parliamentary hearing.

The idea of differentiating the levels of risk attached to government bonds of different countries that banks hold in their portfolios has circulated for some time among European Union officials. It has drawn criticism also from Italy’s previous government. (Reporting by Giuseppe Fonte, writing by Maria Pia Quaglia, editing by Valentina Za)



READ SOURCE

READ  UPDATE 3-PG&E shares and bonds plunge as California wildfire risks mount

WHAT YOUR THOUGHTS

Please enter your comment!
Please enter your name here