In the aftermath of the euro-area sovereign debt crisis, several commentators have questioned the favourable treatment of banks’ sovereign exposures allowed by the current prudential rules. In this paper, we assess the overall desirability of reforming these rules. We conclude that the microeconomic and macroeconomic costs of a reform could be sizeable, while the benefits […]
Marco Taboga is the Head of the Financial Markets Unit at the Economic outlook and monetary policy Department of the Bank of Italy. He is an expert in finance and mathematical and statistical methods applied to finance. He holds a Ph.D. in applied mathematics and a Master in finance from the London School of Economics and Political Science. His research on portfolio selection, interest rate modelling and equity pricing has been published in top scholarly journals, including Mathematical Finance, The Journal of Money Credit and Banking and International Finance.