And this is why, for a decentralised framework to function, the large exposure regime has to apply to bank lending to sovereigns as well. Simply doing away with the zero-risk weighting will not suffice. Banks’ exposures to their respective sovereigns are often too large.
1/2  BIS central bankers' speeches  Ladies and Gentlemen, To paraphrase President Reagan, the NBU is a shining city upon a hill whose beacon light guides freedom loving people in Ukraine. And I am far from exaggerating. Its achievements, professionalism as well as commitment as an independent and transparent central bank, delivering price and financial stability, cannot be overstated.