The Committee would also examine the potential for interaction amongst various policy prescriptions amongst themselves as well as with the monetary policy objectives to assess whether there is any potential room for material inconsistency which may severely undermine the overall objectives. 10. The fourth element impacting capital requirements is provisioning. IFRS 9 requires provisioning based on expected loss provisions.
The yields on Greek sovereign bonds began to rise to unsustainable levels. By May 2010, the yield on 10-year Greek sovereign bonds had risen to over 10 percentage points above those of Germany. Greece would no longer have been able to finance its public expenditures. The government did not have many options: Greece had its back against the wall.