Eurozone needs low-risk asset, ECB paper says

New asset would allow banks to change holdings of sovereign bonds, researchers argue


European policy-makers should create a low-risk asset in order to encourage banks to reallocate their holdings of sovereign bonds, a working paper published by the European Central Bank argues.

In Regulating the doom loop, Spyros Alogoskoufis and Sam Langfield model how banks re-allocate their sovereign bond portfolios in response to regulatory reforms. The question is one of the most heavily debated by European policy-makers.

Some national governments, led by Germany, have consistently called

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account