A bank which barely meets this limit will not be able to buy any further sovereign bonds without first acquiring additional capital. But the leverage ratio is designed only to be a backstop for the minimum capitalisation at banks. 3/6  BIS central bankers' speeches  Thus, it is not an instrument that directly addresses sovereign risk. This regulatory gap has numerous consequences.
In fact, the information contained in BPI’s document was incorporated: – In the scope of supervisory investigations undertaken on Grupo ESFG; and – In the context of ETRICC2 – the review of the major economic groups that are the banking system’s debtors – which was under preparation by Banco de Portugal in early August 2013.