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 […]
Pietro Tommasino is a Senior Economist at the Bank of Italy (DG Economics, Statistics and Research) since 2004. He earned a B.A., a M.Sc. and a Ph.D. in Economics from Bocconi University. His expertise is in the areas of public choice and public finance.