And there are also no upper limits on how many government bonds the banks are allowed to buy. The regulations still treat sovereign bonds as risk-free, even though the euro-area debt crisis clearly revealed that this assumption is not accurate.
7/9  BIS central bankers' speeches  Banks will be able to cope with the restructuring of sovereign debt only when banks hold sufficient capital against government bonds and a limit is placed on the size of individual exposures. And only then is there also likely to exist the political will to take such action. 4.