So any change in sovereign exposure for banks would also have consequences for government funding. This second dimension ties in with the discussion on fiscal union. There is also a third question: the need for financial markets to function with riskfree assets.
In fact, part of the asset quality problem is also attributable to poor underwriting skillset of the bank staff for credit appraisal of large projects at the head office level and for lending to retail and SMEs at operating unit level.