Rising government borrowing costs across the euro zone are reviving concerns about a potential repeat of the sovereign debt crisis that shook the block 15 years ago, although stronger bank capital buffers, tighter supervision and improved regulatory safeguards are expected to limit the risks, Reuters reported.
The renewed concerns centre on the close relationship between banks and their home governments. During the previous debt crisis, falling government bond prices inflicted losses on lenders, forcing some to seek state-backed bailouts and placing further pressure on already strained public finances.
