The head of a major European banking regulator said that regulators are carrying out additional risk reviews of banks' multi-trillion euro sovereign bond portfolios. As yields on treasury bonds in some core European countries rise to multi-year highs, European Banking Authority Chairman Francois-Louis Michaud said there is a need to strengthen monitoring of banks' sovereign bond portfolios. “Regulators are currently doing this,” he said in an interview at the European Banking Authority's Paris headquarters. Michaud added that the relevant risk exposure currently appears to be “within a manageable range.” He said, “Until now, we have not seen banks under pressure due to current market changes, and we also believe regulators are taking necessary measures.”

The head of a major European banking regulator said that regulators are carrying out additional risk reviews of banks' multi-trillion euro sovereign bond portfolios. As yields on treasury bonds in some core European countries rise to multi-year highs, European Banking Authority Chairman Francois-Louis Michaud said there is a need to strengthen monitoring of banks' sovereign bond portfolios. “Regulators are currently doing this,” he said in an interview at the European Banking Authority's Paris headquarters. Michaud added that the relevant risk exposure currently appears to be “within a manageable range.” He said, “Until now, we have not seen banks under pressure due to current market changes, and we also believe regulators are taking necessary measures.”