The banking sector, through sector organization Febelfin, made a remarkable plea on Wednesday for “a balanced government bond”. The one-year government bond that the federal government issued in September last year led to the drain of 21.9 billion euros in savings. “This could be considered an unexpected liquidity test for the banking system (…) A new similar issue would further erode liquidity buffers and risk making some banks less resilient,” Febelfin warns.
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The banking sector fears a new one-year government bond and calls for the issuance of a “balanced government bond”
