Not until banks have begun to hold sufficient capital against government bonds and the size of individual exposures has been made subject to limits will banks be able to effectively cope with the process of restructuring sovereign debt. And only then is there likely to be any concrete political will to take such action. BIS central bankers’ speeches  5  5.
Risk sharing  Economists like Peter Kenen 5 pointed out more than 40 years ago that a functioning monetary union was predicated on risk sharing between its constituent entities.