Ignazio Visco: Banks’ sovereign exposures and the feedback loop between banks and their sovereigns Concluding remarks by Mr Ignazio Visco, Governor of the Bank of Italy, at the conference “Euro50 Group. The Future of European Government Bonds Markets”, Rome, 2 May 2016.
*  *  *  An intensely debated topic in the context of possible further financial reforms, in Europe and internationally, concerns possible actions to address the negative loop between sovereign risk and bank risk. The sovereign-bank nexus was one of the main amplifying factors of financial distress during the euro area crisis.